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<h1>SEBI mandates one-year lock-in for non-promoter pre-issue capital in IPOs; exceptions apply for employee schemes and certain investors.</h1> In an initial public offering (IPO), the Securities and Exchange Board of India (SEBI) mandates that all pre-issue capital held by non-promoters be locked-in for one year. Exceptions include equity shares allotted to employees under stock options or purchase schemes, provided full disclosures are made. Additionally, shares held by venture capital funds, alternative investment funds of categories I or II, or foreign venture capital investors are also subject to a one-year lock-in from the purchase date. For shares resulting from convertible securities, the holding period includes the time held as convertible securities if fully paid-up.