Anchor Investor: Concept approved by SEBI
Jun 18th, 2009 | By admin | Category: Breaking News, Business News, India NewsCapital markets regulator has on Thursday approved the concept of anchor investor under which an investor can subscribe up to 30 percent of the quota for institutional investors in an initial public offering.
Chairman C.B.Bhave told mediapersons, “This is in response to (the) requests of issuers that there was a need for investors with prior commitment who will enhance their ability to sell the issue and bring more confidence”.
Under the new rules, an anchor investor would pay 25 percent of the total investment at the time of applying for the initial public offering, and the balance within tw days of the closure of the issue.