SEBI proposes new IPO rules: What it means for you
SEBI just proposed new IPO rules to make investing fairer and boost market stability.
Retail investors will get at least 35% of shares in IPOs under ₹5,000 crore.
For bigger IPOs, it stays 35% for the first ₹5,000 crore but could drop to 25% after that.
Retail investors to get more shares in smaller IPOs
If you're a retail investor or just starting out, you'll have a better shot at getting shares in smaller IPOs.
For larger ones, direct retail allocation might go down—but mutual funds will get a bigger slice (up from 5% to 15%), so you can still invest indirectly.
For SME IPOs, the minimum application size may double from ₹1 lakh to ₹2 lakh, making it a bit tougher for small-ticket investors.
Institutional investors' share could rise
Institutional investors could see their share rise from 50% to 60% in IPOs exceeding ₹5,000 crore.
Anchor investors will face stricter rules: more anchors required and possibly longer lock-in periods.
All these tweaks aim to balance who gets what—and keep things steady when companies go public.