For exit, anchors now to wait for 90 days after IPO as Sebi tightens norms The Securities and Exchange Board of India in its last board meeting of the year, on Tuesday, tightened norms for public share sales. The board has tightened rules for IPO proceed utilisation, prescribed a minimum 5 per cent gap in IPO price bands, extended the lock-in period for anchor investors to 90 days, and capped the amount a majority investor can sell through an offer for sale. Anchor investors to lock in 50 per cent of their investment for 90 days Investors holding over 20% stake can sell a maximum of 50% of their shares through offer for sale Regulator has tightened disclosures around IPO objectives Valuation reports must for preferential issue allotments resulting in change of control Issuer companies have to adhere to guidelines provided under AoA for pricing of preferential issue, besides to Sebi’s ICDR norms A third of IPO allocations under NII category reserved for application size of Rs 2 lakh to Rs 1 million
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