Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday set a minimum allotment size of Rs 50 million ($1 million) for issuing shares in an initial public offer to “anchor” or cornerstone investors.
Sebi also set a maximum number of anchor investors in a capital raising, it said in a statement, but did not give details.
Sebi said the minimum allotment size would make the concept more effective.
Sebi allowed anchor investors for initial public offerings in June 2009, aimed at improving issuers ability to sell the issue and to boost investor confidence. It allowed them to subscribe up to 30% of the quota for institutional investors.
Anchor investors are required to lock-in their holdings for a period of one month from the date of the share allotment.
In a separate decision, SEBI also set a maximum tenure of 12 months for warrants issued along with public issues or rights issues of securities.