Sebi to exempt private equity funds from IPO lock-in

Currently, the entire pre-IPO shareholding of PE investors cannot be sold for one year after listing

The Securities and Exchange Board of India (Sebi) is planning to exempt private equity (PE) funds from the one-year lock-in requirement in initial public offerings (IPOs). Under the current norms, the entire pre-IPO shareholding of PE investors cannot be sold for one year after listing.

According to sources, the capital market regulator will relax the lock-in requirement for the category II alternative investment funds (AIFs). “The regulator will extend the Regulation 37 of the ICDR Regulations to category II AIFs,” said a person with direct knowledge of the development.

The decision is likely to be taken at Sebi’s board meeting