SEBI headquarters in Mumbai. (Image: Mohammed Uzair/NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Securities and Exchange Board of India has stopped mutual funds from investing in pre-IPO placements, sources told NDTV Profit.

The fund houses will only be able to invest in the anchor investor portion or the public issue of an IPO. Anchor allotments take place a day before an IPO opens to the public, whereas pre-IPO placements occur several weeks or months ahead of the listing.

Under existing mutual fund regulations, schemes are allowed to invest in listed and to-be-listed securities. However, since pre-IPO placements happen well before a company’s shares are listed, there has been uncertainty over whether mutual funds could participate in them.

In a co

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