For LIC IPO, govt may ask regulators to ease new norms on investments

May ask Sebi and RBI for relaxing rules regarding anchor lock-in, Rs 1-crore cap on IPO financing

The government is likely to seek a special dispensation from the Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) on the applicability of the recently introduced — and yet-to-be-tested — norms regarding anchor investors’ lock-in period and caps on high networth individual (HNI) funding for the initial public offering (IPO) of Life Insurance Corporation of India (LIC), said people in the know.

With effect from April 1, 2022, the 30-day lock-in period has been extended to 90 days for 50 per cent of those applying under the anchor investors category. Meanwhile, the RBI has