Before the opening of a book-built IPO to the public, a

Solution

An anchor investor is a Qualified Institutional Buyer (QIB) who invests a significant amount in an IPO just before it opens. Their participation serves as a signal of confidence in the issue, which can boost the sentiment of other investors. The price they pay sets an 'anchor' for the issue's pricing, and their shares are subject to a lock-in period.  As per SEBI ICDR Regulations, anchor investors in an IPO are subject to a staggered mandatory lock-in: 50% of their shares are locked for 30 days, and the remaining 50% are locked for 90 days from the date of allotment. This structure was implemented to reduce immediate post-listing volatility and promote long-term investment.