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IPO Anchor Book Allocation: Are Mutual Funds Short-Changing Unitholders?

Mutual funds seem to be exploiting a loophole that could potentially shortchange their retail investors.

<div class="paragraphs"><p>An ad for Mutual Funds displayed at a business stop in Mumbai. (Source: NDTV Profit)</p></div>
An ad for Mutual Funds displayed at a business stop in Mumbai. (Source: NDTV Profit)
Mutual funds have now emerged as one of the biggest pools for fundraising by companies hitting the primary markets. However, there seems to be a loophole that is being used by the domestic funds that could potentially shortchange the retail investors of the schemes.As part of the anchor investment norm, any initial public offering or IPO bound company can allocate up to 60% of the Qualified Institutional Bidder to anchor investors on...
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