Sebi blocks mutual funds from pre-IPO investments
Financial Express Hyderabad
|October 25, 2025
MAJOR MOVE
IN A SURPRISE development, the Securities and Exchange Board of India (Sebi) has directed mutual fund (MF) houses not to invest in pre-initial public offering (IPO) share placements.
In a letter to the Association of Mutual Funds in India(Amfi), the regulator said, “It is hereby clarified that in case of IPOs of equity shares and equity-related instruments, schemes of mutual funds can only participate in the anchor investor portion or in the public issue.”
Sebi sources as well as an Amifi official did not comment on the reasons that led to the development.
Pre-IPO placements are those in which the company raises money from mutual funds/other investors before it has filed the draft red herring prospectus (DRHP) with the markets regulator.
यह कहानी Financial Express Hyderabad के October 25, 2025 संस्करण से ली गई है।
हजारों चुनिंदा प्रीमियम कहानियों और 10,000 से अधिक पत्रिकाओं और समाचार पत्रों तक पहुंचने के लिए मैगज़्टर गोल्ड की सदस्यता लें।
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