SEBI's New IPO Rules: Boosting Mutual Fund Participation
The Securities and Exchange Board of India (SEBI) is considering changes to initial public offerings (IPOs) over ₹5,000 crore. They propose reducing the retail investor allocation from 35% to 25%, while increasing the share for mutual funds from 5% to 15%. This shift aims to stabilize demand and boost investor confidence, especially in volatile markets. Since retail participation has been flat, enhancing mutual fund allocations allows for an indirect increase in retail investment. This plan reflects market realities and seeks to make IPOs more accessible and appealing to all investors.
