Overseas funds seek relaxations in IPO payment rules from Sebi

Current framework restrictive, impacting capital allocation, FPIs tell regulator

Overseas funds have sought relaxations in initial public offering (IPO) payment rules from the Securities and Exchange Board of India (Sebi). Foreign portfolio investors (FPIs) want the markets regulator to allow them to apply for IPOs, with a margin payment of 10-25 per cent, said people in the know.

Sources said officials representing overseas investors have told the regulator that the current framework is restrictive, limits their capital allocation, and exposes them to greater foreign exchange risk.

At present, all investors, including FPIs, are required to have the full application amount in their bank at the time of applying for