In a directive dated today, SEBI has clarified that mutual-fund schemes can no longer participate in pre-IPO share placements; they are restricted to the anchor investor portion or public issue of an IPO only. The clarification follows concerns that mutual funds could end up holding unlisted shares if an IPO is delayed or cancelled. The regulator has asked the Association of Mutual Funds in India (AMFI) to communicate this to all asset-management companies immediately.