SEBI Restricts Mutual Funds from Pre-IPO Share Investments

SEBI, the financial rule-maker in India, has told mutual funds (like your parents' investments) they can't buy shares before a company's big public offering (IPO).

Before an IPO, companies sometimes sell shares privately (pre-IPO), but SEBI thinks this is too risky for mutual funds.

It could lead to the funds getting stuck with shares that aren't listed on the stock market if something goes wrong with the IPO.

Funds can still invest a day before the IPO opens to the public.

This change might let other investors, like family offices or special funds, get more involved in these pre-IPO deals.