Sebi halves the post-IPO lock-in period for promoters to 18 months

Sebi has done away with the investment restrictions on the residual portion of investable funds of venture capital funds (VCFs)

The Securities and Exchange Board of India (Sebi) on Friday relaxed the lock-in period with regard to pre-IPO shareholding and approved the concept of ‘controlling shareholders’. The regulator also eased the framework for the issuance of stock options and increased the investment headroom for alternative investment funds (AIFs) in unlisted companies.

The regulator has halved the lock-in period to 18 months that promoters have to observe on 20 per cent of their shareholding following an initial public offering (IPO). The lock-in on pre-IPO shareholding of non-promoters has also been halved to six months, while the minimum lock-in for venture capital funds