The Securities and Exchange Board of India (Sebi) is planning to exempt private equity (PE) funds from the one-year lock-in requirement in initial public offerings (IPOs). Under the current norms, the entire pre-IPO shareholding of PE investors cannot be sold for one year after listing. According to sources, the capital market regulator will relax the lock-in requirement for the category II alternative investment funds (AIFs).

Source - http://www.business-standard.com