Archive · 12 Sep 2025
SEBI Broadens IPO Anchor Investor Framework to Include Insurers, Pension Funds
SEBI, the Indian market regulator, has changed how companies sell stocks to the public.
Now, more types of investors can buy shares early on.
Before, only mutual funds could be major initial investors, but now insurance companies and pension funds can join.
This change aims to make the stock market more stable.
They also made some changes in how many investors are allowed, and how much is set aside for them.
This helps to bring in money from investors who invest for the long term, making the market more reliable.
ICICI Bank is also increasing its stake in ICICI Prudential AMC.
SEBI amended ICDR Regulations to include life insurance companies and pension funds in the anchor investor category for IPOs.
Overall reservation for anchor investors increased from one-third to 40% of the IPO issue size.
One-third of the anchor allocation will continue to be reserved for domestic mutual funds.
Any undersubscription by insurance and pension funds will be reallocated to mutual funds.
ICICI Bank received approval to purchase additional shares in ICICI Prudential AMC.
- Who
- SEBI, ICICI Bank
- What
- SEBI expands the anchor investor framework and ICICI Bank's plan to purchase additional shareholding.
- When
- Approved on Thursday and Friday.
- Where
- India
- Why
- To attract long-term domestic capital and diversify the investor base in IPOs, ensuring market stability.
- Regulatory Body
- SEBI (Securities and Exchange Board of India)
- Key Change
- Expansion of anchor investor framework in IPOs
- New Participants
- Life insurance companies and pension funds
- Overall Reservation
- Increased from one-third to 40% of IPO issue size
- Mutual Fund Allocation
- One-third of the anchor portion
