Skip to content

SEBI Anchor Investor Norms: Reserved Portion Raised to 40%

7 November 20251 min read
BANKING & FINANCESEBI AnchorInvestor Norms:Reserved PortionRaised to 40%7 November 2025safalsetu.com

Why in the news

SEBI amended its ICDR rules to change how IPO shares are set aside for anchor investors, aiming to attract more domestic institutions.

Key facts

  • Anchor reservation up from 33% to 40%: mutual funds 33%, insurers and pension funds 7%.
  • Any unsubscribed part of the 7% goes to mutual funds first.
  • Anchor count for portions above ₹250 crore: 15 per ₹250 crore, earlier 10.
  • Effective 30 November 2025.

Old versus new

AspectEarlierNow
Reservation33%40%
Anchors, big IPOs10 per ₹250 crore15 per ₹250 crore
Discretionary allotmentTwo classes: up to ₹10 crore, and ₹10 crore to ₹250 croreOne merged category up to ₹250 crore

Details

  • Up to ₹250 crore: 5 to 15 anchors, at least ₹5 crore each.
  • Every extra ₹250 crore or part: 15 more anchors.
  • Gains: wider long-term domestic participation, less concentration, simpler allotment.

Exam angle

  • Regulation amended: ICDR rules.
  • Effective date: 30 November 2025.

Test yourself

1. SEBI's revised IPO norms raise the anchor investor reservation to what percentage?

The reserved portion went up from 33% to 40%.

2. Under the new anchor rules, what share is earmarked for insurance companies and pension funds?

Mutual funds get 33% and insurers/pension funds 7% of the 40%.

3. From when do SEBI's revised anchor investor rules apply?

The notes give 30 November 2025 as the effective date.