A number of important decisions have been taken at the board meeting of the Securities and Exchange Board of India (SEBI). SEBI has decided not to allow mutual funds to invest in crypto assets. In addition, IPOs and anchor investors’ stakes have also been decided. SEBI Board approves IPO amendment
According to the SEBI board, it will be necessary to differentiate between the upper and lower prices of the IPO price band by 5 per cent. In addition, 33 per cent quota will be reserved for non-institutional investors (NIIs) from Rs 2 lakh to Rs 10 lakh, while for applications above Rs 10 lakh, the NII quota will be 67 per cent. This rule will come into force from April, 2022.
SEBI chairman Ajay Tyagi said mutual fund companies would not be allowed to invest in crypto assets. Mutual funds are not allowed to invest in crypto related companies or foreign companies through funds of funds. Mutual funds should not invest in such companies unless there is a policy on crypto. No NFOs are allowed on crypto.