The ICDR Regulations establish the framework for issuance of capital by companies, including criteria for anchor investors in public issues. Anchor investors are institutional investors who take up a portion of an issue ahead of the public offering, thereby providing certainty and confidence in the process.

In the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018:

In Schedule XIII, in Part A, in paragraph (10):
(i) in sub-paragraph (c), in clause (I), sub-clauses (i), (ii), and (iii) shall be substituted with the following sub-clauses:
“(i) minimum of 2 and maximum of 15 such investors shall be permitted for allocation up to two hundred fifty crore rupees, subject to minimum allotment of five crore rupees per such investor;
(ii) in case of allocation above two hundred fifty crore rupees, a minimum of 5 such investors and a maximum of 15 such investors for allocation up to two hundred fifty crore rupees and an additional 15 such investors for every additional two hundred fifty crore rupees or part thereof, shall be permitted, subject to a minimum allotment of five crore rupees per such investor.”
(ii) sub-paragraph (d) shall be substituted with the following sub-paragraph, namely,
“Forty per cent of the anchor investor portion, within the limits specified in sub-paragraph (b), shall be reserved as under –
(i) 33.33 per cent for domestic mutual funds; and
(ii) 6.67 per cent for life insurance companies and pension funds:
Any under-subscription in the reserved category specified in clause (ii) above may be allocated to domestic mutual funds.

Explanation: For the purpose of clause (ii), –
(A) “life insurance company” means an entity registered with the Insurance Regulatory and Development Authority of India under the provisions of the Insurance Act, 1938;
(B) “pension fund” means a fund registered with the Pension Fund Regulatory and Development Authority under the provisions of the Pension Fund Regulatory and Development Authority Act, 2013.”