News

SEBI is re-evaluating the 35% retail investor quota for IPOs, said Chairman Tuhin Kanta Pandey stating that the regulator is open to revisiting the rule. He said he would not like to pre-judge the matter, but it will be put up for public consultation.

The quota, fixed years ago, has come under scrutiny due to the surge in retail investor participation and the growing size of the Indian equity markets. While there is a clamour for greater retail quota, some investment bankers have also been pushing for reducing the quota citing that retail portions of large issues sometimes do not get fully subscribed.

“We are in the process of reviewing various regulations in consultation with the industry, and public consultations for this too will be part of that process,” Pandey told Moneycontrol. While no definitive position has been taken yet, he emphasised that any changes will be considered.

“We will look at data and gather inputs from committees like PMAC, SMAC, and IPAC. If there is a strong rationale and industry consensus, we will consider modifications. However, we also need to ensure that any changes don’t destabilize the market,” he added.

In March, a section of merchant bankers had demanded that retail investors quota in large size IPOs should be reduced. The rationale was lack of sufficient demand in large size issues. Merchant bankers wanted that in large size IPOs the institutional and HNI quota should go up and retail part should be cut down, the regulator had sought data from merchant bankers in support of their arguments. Merchant bankers cited the example of Hyundai Motors, Hexaware Technologies, and Swiggy, which received weak response from retail investors, though other factors like market sentiment at the time may be also responsible for that.

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

${res.must_watch_article[0].headline}

Sensex Today Jammu Kashmir News Live DC vs KKR Live Score Canada Election Results Q4 Results 2025 Live Ather Energy IPO GMP JKBOSE 10th Result 2025 TS SSC Results 2025 NEET Admit Card 2025 IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.