A new directive from capital market regulator, SEBI, coming into effect from today, requires institutional investors applying for initial public offers, or IPOs, to pay 100 per cent money upfront. Earlier, institutional investors were required to pay just 10 per cent money with their IPO applications, while retail investors had to put up the entire 100 per cent with their IPO applications. This move by SEBI means that institutional and retail investors will be placed at par as regards payment while applying for primary issues. Because institutional investors will have to put up more money upfront, they may apply for fewer shares, which could have the effect of bringing down the over-subscriptions levels of IPOs.