SEBI sets Rs5-crore floor for allotment to anchor investors
24 Nov 2011
The Securities and Exchange Board of India (SEBI) has prescribed a minimum allotment size of Rs5 crore for anchor investors and a maximum number of anchor investors, slab-wise, in order to make the concept of anchor investors more effective.
The market regulator, however, did not prescribe the maximum number of anchor investors.
The concept of anchor investors was introduced by SEBI in June 2009 as a class of committed investors who can be relied upon to anchor an issue of capital in all market conditions, adverse or otherwise.
SEBI had then allowed anchor investors to subscribe up to 30 per cent of the quota for institutional investors in initial public offers.
Anchor investors are required to lock in their holdings for a period of one month from the date of the share allotment.
The concept of anchor investors was introduced by SEBI in June 2009 as a class of committed investors who can be relied upon to anchor an issue of capital in all market conditions, adverse or otherwise.