Sebi board meeting likely to tighten norms for IPO price bands, investors

The amount a majority investor can sell through offer for sale could be capped.

A December 28 board meeting of the Securities and Exchange Board of India (Sebi) may tighten norms for initial public offerings (IPOs).

The board may look to prescribe a minimum 5 per cent gap in IPO price bands, extend the lock-in period for anchor investors to 90 days and cap the amount a majority investor can sell through offer for sale.

The regulator is looking at whether there can be a preferred allocation for anchor investors who opt for a longer lock-in period, said a person familiar with the matter. If there are two anchor investors, one willing to stay