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SEBI's Shock Rule: Mutual Funds BANNED from Pre-IPO Deals! Your Investments Will Never Be The Same!

SEBI/Exchange

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Published on 21st November 2025, 4:30 PM

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Author

Abhay Singh | Whalesbook News Team

Overview

Indian markets regulator SEBI has prohibited mutual funds from investing in pre-IPO share placements, aiming to boost liquidity and transparency in company valuations. However, mutual funds can still invest in anchor rounds. SEBI also plans to replace lengthy IPO prospectuses with simpler 'offer document summaries' for better investor understanding. Earlier rule changes had increased the anchor investment portion, with a larger share reserved for mutual funds.