Back

Dr Sarun George Sunny

The Way I See It • 1d

SEBI’s New Rule: Mutual Funds Must Say Goodbye to Pre-IPO Deals The Securities and Exchange Board of India (SEBI) has recently stepped in to bring a meaningful change in the way mutual funds invest in the IPO space. From now on, mutual funds can no longer chase the lucrative pre-IPO placements—those early bird shares offered before a company officially goes public. Why does this matter? Pre-IPO investments often come with a catch: if the IPO gets delayed or canceled, mutual funds could be stuck holding unlisted shares that are illiquid and hard to value. That’s a big risk for fund investors who expect transparency and the ability to redeem their investments at any time. SEBI’s new directive ensures mutual funds stick to investing in the anchor investor portion or the public issue, keeping these investments liquid and properly valued. This move aligns with the regulator’s mandate to protect retail investors and maintain trust in mutual fund products.

Reply
11

More like this

Recommendations from Medial

Image Description

Mohd Rihan

Student| Passionate ... • 8m

Everyone should know 19 financial terms before any investment... Stock: A security that represents the ownership of a fraction of the issuing corporation. IPO: The first sale of the company's share to the public allowing it to raise capital by listin

See More
1 Reply
4
11
Image Description

Hemanth Varma

''Money can't buy ha... • 1y

can mutual fund be a profitable investment? A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its po

See More
1 Reply
6
Image Description

SWAYAM DAS

Hey I am on Medial • 1y

Mutual Fund Maestro Slogan: "Your guide to navigating the world of mutual funds." Description: Mutual Fund Maestro is a comprehensive platform dedicated to helping investors understand, research, and invest in mutual funds. It provides a one-stop-sho

See More
1 Reply
1
2

Naveen Nayak

Hey I am on Medial • 5m

Guys i have an idea to start a mutual fund named seasonal funds where we invest funds during seasonal time of shares... Any one can tell me if this works ?

Reply
3
Image Description
Image Description

Mayank Kumar

Strategy & Product @... • 1y

Mutual fund platform accepted money for mutual funds, but didnt invest it!!! Kya ab bhi mutual funds sahi hai?

4 Replies
10

financialnews

Founder And CEO Of F... • 1y

"Sebi Permits Mutual Funds to Invest in Overseas Funds Holding Indian Securities for Enhanced Transparency" Sebi Permits Mutual Funds to Invest in Overseas Funds with Limits on Indian Securities Exposure The Securities and Exchange Board of India (

See More
Reply
1

financialnews

Founder And CEO Of F... • 1y

Pharma, Healthcare, and Banking Sectors Poised for Growth, Says Tata Mutual Fund Expert" should do the trick Rahul Singh of Tata Mutual Fund Discusses Growth Potential of Active Funds, NFOs, LTCG Tax Impact, and Market Valuation Risks Despite high

See More
Reply
Image Description

Abhijit Jha

Full Stack Devloper ... • 1y

What is FPO? FPO abbreviated as Follow-on Public Offer is a process in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors. It is different from an IPO where the company issue

See More
2 Replies
6

Inactive

AprameyaAI • 1y

Upcoming Sector Super Micro Computer or Microcomputers is expected to continue growing its share of the AI server market, with analysts predicting it will reach 17% by 2026 Raspberry Pi priced its IPO at £2.80 per share, valuing the company at £541m

See More
Reply
3
10

Download the medial app to read full posts, comements and news.