Sebi has proposed to postpone the implementation of tighter anchor investor norms for large IPOs. Bankers said the move is aimed at facilitating better institutional participation in the upcoming initial share sale of Life Insurance Corporation (LIC).
Until now, shares allotted to anchor investors in an IPO were subject to 30 days lock-in. However, with effect from April 1, 50% of such shares allotted to the anchor investors would be subject to an enhanced 90 day lock-in period.
However, now the regulator has proposed to exempt all IPOs worth more than Rs 10,000 crore from the enhanced norms until July 1,2022, according to agenda of the Sebi board meeting dated March 29.
“The impact of the new allocation methodology for NIIs (non-institutional investors) and lock-in provisions for Anchor Investors appears to be uncertain and may adversely affect their participation in the forthcoming IPOs especially those of the large issuers,” said the document. “Accordingly, it is felt that implementation of these amended provisions especially for large issuers from April 01, 2022 may not be in the best interest of securities market at this stage.”
