India regulator bars mutual funds from pre IPO placements

Securities and Exchange Board of India (SEBI) has informed mutual-fund managers that investing in companies before their public listing is not permitted, except via anchor or official IPO participation. The move follows mandates that mutual funds cannot hold unlisted securities and addresses risks of schemes ending up with non-liquid holdings if an IPO is cancelled. The restriction comes amid India’s record IPO year, with companies raising billions and the mutual-fund sector managing over ₹75.6 lakh crore. Fund houses say it limits access to early-stage deals.