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Below the Comment on SEBI proposing to change in allocation quota in IPOs vide their consultation paper dt: 31 July 2025 by Makarand M Joshi, Founder partner MMJC & Associates, a corporate compliance firm

“SEBI’s proposal to allow fix allocation to anchor investors viz. mutual funds, insurance companies, and pension funds would lend credibility to the issue. These institutions enter the IPO before the public which in turn boosts retail investor trust and market stability.

While the proposed reduction in retail quota to 25% for IPOs above Rs.5,000 crore may raise concerns, it is important to note that larger issues come with significantly higher share volumes. As a result, retail investors may still have equal or even better chances of allotment. The key lies in balancing institutional depth with inclusive retail participation.

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