SEBI Bans Mutual Funds from Pre-IPO Placements

Imagine companies wanting to sell shares to the public for the first time.

Before this, they sometimes sell shares privately, called pre-IPO placements.

SEBI, the financial rule-maker in India, has said mutual funds can't buy these pre-IPO shares.

This means mutual funds can only buy shares when the company officially offers them to the public or to big investors (anchor investors).

SEBI did this because buying pre-IPO shares could be risky, especially if the company's public offering gets delayed or canceled.

The goal is to keep investments safe, make sure everything is done correctly, and protect the financial markets.