Discussion
What recent changes have been made by SEBI to norms for public offers through removal of restriction on maximum number of anchor investors on 12th September 2015?
Answer: A
Correct answer: Present regulation limit of number of anchor investors at 15 if public size issue is below INR 250 crore, can be increased to 25 if issue size is over 250 crore
SEBI removed the ceiling on the maximum number of anchor investors for large issues. The rule had capped the number at 15 for an issue below Rs 250 crore, rising to 25 above that threshold.
The limit had become a constraint on the very issues it least suited: a large offering has a substantial anchor portion, and a small number of participants means each must take a very large ticket, narrowing the field to a handful of the biggest institutions. Allowing more of them spreads the allocation and widens participation.
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