Why does maximum subscription Amount for Retail Investor is limited to Rs 2 lakh?

asked

Save over 60% on Brokerage

We can help you save between 60% to 90% brokerage fee & taxes. Contact us today...

NamePhone
EmailCity
State
Are you a day trader?

SEBI has classified the investors based on investor type and investment amount. A retail investor in the financial definition is limited to invest up to Rs 2 lakh. Although the retail investor can invest more than Rs 2 lakh then the subscription category will be HNI (High Network Individual).

answered

3 Comments

Nagamee
3. Nagamee  Mar 15, 2010 14:14 I Like It. | Report Abuse Reply
b'coz greed makes a man unreasonable and there should be a limit. 1 lac is a really a good limit so that everybody gets the benefit (if price appreciates on listing) and your lose is limited (if it tanks on listing).
SWAPNIL
2. SWAPNIL  Oct 7, 2009 13:36 I Like It. | Report Abuse Reply
May be because this is not a big amount not a small amount as well. In todays time this may be the average amount anyone can afford to loose.
Jimmy
1. Jimmy  Jul 9, 2008 16:34 I Like It. | Report Abuse Reply
because an investor making an investment of above Rs. 1 lacs shall be treated as an HNI

List of all questions Ask your question

More IPO Basics Questions...

  1. What is an IPO?
  2. Who decides the Price Band?
  3. Who decides the date of the issue?
  4. What is the role of registrar of an IPO?
  5. What is the role of Lead Managers in an IPO?
  6. What is Follow on public offering or FPO?
  7. What is primary & secondary market?
  8. What is the life cycle of an IPO prospectus?
  9. What is the life cycle of an IPO?
  10. What is the difference between Book Building Issue and Fixed Price Issue?
  11. What is the difference between Floor Price and Cut-Off Price for a Book Building Issue?
  12. What is the difference between RII, NII, QIB and Anchor Investor?
  13. As a retail investor I want to apply more then Rs 1 lakhs in an IPO. Can I invest in Non-institutional bidder's category? If yes then what are advantages or disadvantages of this?
  14. Is it mandatory to have PAN number to apply in an IPO?
  15. How many days an IPO remain open for public?
  16. What information should I keep after I submit the IPO application form?
  17. What is 'Market Lot Size' and 'Minimum Order Quantity' for an IPO?
  18. Does applying in an IPO guarantee me to get certain amount of shares?
  19. Investing in IPO's is much less riskier then directly investing in stock market. Is that true?
  20. Can I apply in an IPO through multiple applications on same name?
  21. How many days is the issue open?
  22. What is Basis of Allocation or Basis of Allotment?
  23. Can I revise or cancel my IPO application?
  24. Where do I get an IPO application form?
  25. Can a minor apply in IPO?
  26. Tips to choose right IPO for investment.
  27. Can a person apply in the non-institutional bidder category of an IPO?
  28. What is the minimum & maximum investment one could do in HNI category?
  29. Can I place a buy order during after hour session before the listing date of an IPO?
  30. How one can apply in IPO's online?
  31. How is IPO listing price decided?
  32. What is right issue or RI?
  33. Why does the retail Individual Investor RII bidding status is not getting updated every hour?
  34. What are the risk factors involve in applying in an IPO?
  35. Can both the joint demat account holders individually apply for an IPO?
  36. Why does maximum subscription Amount for Retail Investor is limited to Rs 2 lakh?
  37. What are the determining factors for the selection of an ipo to invest?
  38. How much tax I have to pay on returns (capital gains) for a particular IPO?
  39. What is the procedure to withdraw from an IPO?
  40. How a Company gets listed on stock exchange without an IPO?
  41. For how many days an issue is required to be kept open?
  42. Can minors apply to an ipo ?
  43. What is over the counter trading ?
  44. Can we sell the stock allotted to us in a ipo before the stock gets listed ?
  45. How to fill IPO online ?
  46. What will be the category of 'private family trust' for applying in IPO ?
  47. What will be the category of 'private family trust' for applying in IPO ? Retail Bidder or Non-Institutional Bidder ?
  48. Can private limited company eligible to subscribe in non institutional category?
  49. What do you mean by pre IPO placement? Is it worth to buy any script at the time of pre IPO placement and how will it benefit the customers ?
  50. Who can apply for QIBs in IPO? WHAT is the rules and regulatin for QIBs ?
  51. How many days issue takes to list in the market ?
  52. What is call option and put option?
  53. What is the listing of ipo and how the listing done ?
  54. How many days does it take for a cheque to be cleared for an application of an IPO?
  55. How cut off price of IPO decided?
  56. What is meaning of BID QUANTITY & BID PRICE ?
  57. What is the full form of IPO ?
  58. What do you mean by IPO funding ?
  59. What is the role of 'Syndicate Members' in IPO Processing?
  60. What are the timelines for Book Building IPOs in India?
  61. When maximum number of days for which IPO bid should remain open is 7 (and minimum is 3), why companies go for less than 7 days bidding (i.e. 3, 4 days generally)?
  62. How to apply more than one application in an IPO?
  63. How many IPO applications can be made from one bank account using ASBA?
  64. What are different ways of filing IPO application?
  65. How many IPO applications can submit through online net banking from one bank account?
  66. Can I apply in an IPO from my current bank account?
  67. Can one apply an IPO from sweep in/out saving bank account?
  68. Can I apply IPO in the name of family members & friends from my saving bank account?
  69. Can I apply more than one IPO application in my name from different saving bank accounts in the same bank or different banks?
  70. What fields make an IPO application unique?
  71. If I have joint DP account whom I should consider for applicant in an IPO application form?
  72. Can I apply an IPO application in the name of Minor or HUF?
  73. How many lots in an IPO should I apply to get maximum allocation in retail category?
  74. Does changing the broker, bank account or applying 1st-day 1st-hour change my chance for IPO allotment?
  75. When should I expect allotment of IPO shares?
  76. When should I expect credit of IPO Shares in my Demat Account?
  77. When should I expect release of funds blocked for IPO in my bank?
  78. When should I expect listing of IPO shares?
  79. Till what time I can apply in an IPO on last day of an IPO?
  80. Should I submit three bids of one lot each at three different bid prices in one IPO application?
  81. If there is a discount to retail investors in an IPO, at what price should I subscribe?
  82. I have not marked cut-off but has given bid price at upper band in an IPO application. Does it make any difference?
  83. Why should I bid at cut-off in a book building IPO?
  84. I applied in an IPO whose price band is now reduced. I have already applied in original band & amount stands blocked already. What should I do?
  85. Where can I find the subscription figure of an IPO?
  86. How IPO shares price is discovered in early price discovery session?
  87. How one can apply in IPO's offline?
  88. How i can apply for an IPO online while my broker is not offering IPO facility but i have a demat account.
  89. Is it possible for individual to apply for both retail (below 2 lakh) and HNI (above 2 lakhs) for a IPO?
  90. Is there any eligibility criteria for NII or just minimum investment of Rs 2 lakh is required?
  91. Can I apply for an IPO for my friend’s PAN details in my Demat account?
  92. Is there different application form for NII and retail investor?
  93. If an individual wants to apply in NII quota the procedure is same or different while applying in physical mode and online mode?
  94. Is there any circuits at the time of IPO listing?
  95. How to sell IPO shares on listing day during special pre-open time between 9:00AM to 9:45 AM?
  96. Can we apply for an IPO online on Sunday?
  97. How to sell IPO?
  98. I want to invest for short time so please let me know which IPO will give positive gain?
  99. How to find the old IPO offer document?
  100. I want updates on every upcoming IPO? Where can I get it?
  101. Is there any benefit or disadvantage of applying for more than one lot in an IPO ?
  102. Where can we get the listing date of an IPO?
  103. Can IPO application be made through FD in the bank account?
  104. Can I apply for above 2 lakh in an IPO as a retailer?
  105. How much returns can expect from an IPO?
  106. Can I apply for sme IPO through online banking?
  107. I am an individual and want to invest in IPO what category should I choose?
  108. What does 'DP name' means in an IPO online form?
  109. How to get my lien amount back after IPO?
  110. I would like to invest in an IPO? I am doing it for first time? Could you please guide me in which IPO should I invest ?
  111. How to get information on number of applications of an IPO?
  112. What is the minimum reserve portion for retail category in an IPO. Sometimes i find 35% but sometimes even i find 10%. please clarify.
  113. Can I apply for an ipo through ASBA facility of my bank without having trading account?
  114. What is the difference between IPO issue price and listing price?
  115. How many days are required to launch an IPO after getting SEBI's nod?
  116. How can I know the exact date of an IPO?
  117. What is the difference between Upper Price and Cut-Off Price for a Book Building Issue?
  118. I have marked cut-off but has taken bid price at lower band in the IPO application. Does it make any difference?
  119. Where can I get the list of all Registered Main Syndicate member list with contact number for an IPO?
  120. Can I make payment for an IPO from my father's or someone else's account by registering through ASBA?
  121. I have mistakenly filled incorrect DP Id in my application. The IPO is closed now. What should I do?
  122. Can I apply for an IPO by taking a loan?
  123. How do I apply in an IPO?
  124. What is the difference between Public Issue, Right Issue, Bonus Issue and Private Placement?
  125. Explain Steps in an IPO Process?
  126. Can I cancel my Bid for online IPO order?
  127. What is the difference between Fixed Price Issue and Book Built Issue?
  128. What are the different types of investor categories?
  129. Will I get the acknowledgement of receipt for applications submitted through ASBA from the SCSB?
  130. Can one person apply an IPO in the retail category as well as NII category at the same time?
  131. Can a retail investor (meaning not super rich) apply under NII quota, or is there a certain eligibility?
  132. Can a person apply in the NII and retail investor category in two separate bids?
  133. What are the pros and cons of applying in NII quota? Are there more chances of allotment?
  134. How different is QIB from anchor investor?
  135. Are HNIs allotted from the NII reserved allocation quota of 15%?
  136. When applying in an IPO, do we apply in lots or can apply as per the money that we want to invest?
  137. I and my wife have a joint demat account. Can we apply for an IPO using the same demat account with a joint bank account or from different Bank accounts?
  138. How to select HNI as a category while applying online?
  139. Is it possible to Apply IPO using BHIM application?
  140. What is the time for After Market Orders (AMO) in Sharekhan and how to place it?
  141. How to apply for IPO online from a private limited or LLP Company demat account?
  142. Is third party ASBA allowed in IPO application?
  143. Is third party UPI accepted in IPO application?
  144. Does third party ASBA or UPI IPO application rejected or accepted?

List of all questions Ask your question

CONTACT US
SITEMAP
GUEST BOOK
ABOUT US

Best Discount Broker in India

Best Full-Service Brokers in India

Unlimited Monthly Trading Plans

Compare Share Broker in India

Compare Stock Broker  

Download Mobile App

Download Chittorgarh.com Mobile App
Download Chittorgarh.com iOS Mobile App

Our Websites

www.TraderJi.com
Stock Market Discussion Forum
www.TopShareBrokers.com
Comapare Stock Brokers
www.ExchangeRateIQ.com
Get Best Exchange Rates
www.CompareShareBrokers.com
Best Stock Broker Reviews
© 2021 Chittorgarh Infotech Pvt Ltd. All Rights Reserved. | Disclaimer and Privacy Statement


Current IPO

IPO Dashboard Current Mainline IPO Current SME IPO IPO Calendar Performance Tracker IPO Grey Market

Live IPO Information

IPO Review IPO Rating IPO Subscription IPO Listing Date IPO Allotment Status IPO Message Board

More IPO Info

IPO Reports (Historic) IPO FAQs IPO Articles IPO Glossary

NCD Issues

Current NCD Issues NCD Reviews What is NCD IPO? NCD Calendar NCD Glossary NCD Articles

Rights Issues

Current Rights Issues Rights Reviews Rights Calendar

Buyback Issues

Current Buyback Buyback Reviews Buyback Calendar

Best of

Top Stock Brokers in India Top 10 Discount Brokers Top 10 Full-Service Brokers Lifetime Free Demat Acct Best Broker for Beginners More Reports...

Discount Broker Review

Zerodha (₹20/trade) Upstox (₹20/trade) Angel Broking (₹20/trade) 5paisa (₹20/trade) ProStocks (₹899 Unlimited) More Brokers...

Full-service Review

Angel Broking (₹20/trade) IIFL Securities (₹20/trade) Aliceblue (₹20/trade) ICICI Direct Sharekhan More Brokers...

Compare Brokers

Broker Articles / Tutorials Compare Share Brokers Side-by-Side Comparison Broker Complaints Monitor Broker Glossary Special Offers

Trading Platform Reviews

Zerodha Kite Review Sharekhan TradeTiger Omnesys NEST Review ODIN Review NSE NOW Review More Reviews...

Stock Market

Stock Home Page Stock Trading Holidays Commodity Trading Holidays Stock Message Board

NSE / BSE

NSE SME Share Prices NSE Bulk Deals NSE Circuit Filter BSE SME Share Prices

Stock Market FAQs

FAQ List Demat Account PAN Card Stock Market Basics IPO Basics

Options Basics

Options Trading Homepage Home Options Overview Benefits & Risks of Options Options Pricing Options Trading FAQs Options Trading Glossary

Broker Reviews

Zerodha Review 5paisa Review ProStocks Review Sharekhan Review Angel Broking Review ICICI Direct

Options Trading Platform

Kite Zerodha Trade Tiger Sharekhan Omnisys NEST Upstox RKSV Fyers One Fyers ScalperT Finvasia

Options Strategies

Strategies List Side-by-Side Comparison Options Strategy FAQs

Best of

NRI Homepage Home Best NRI Trading Account Best NRI 3-in-1 Account Top 10 Discount Brokers Top 10 Full-Service Brokers

NRI Trading Guide

Trading Account Basics Trading Requirements Demat Account Explained USA NRI Trading Account Trading in Derivatives More Articles...

NRI Broker Reviews

ICICI Direct Zerodha Tradeplus Prostocks Axis Bank Angel Broking

NRI Brokerage Comparison

ICICI Driect Vs Zerodha HDFC Securities Vs Zerodha Axis Direct Vs Zerodha Angel Broking Vs Zerodha ICICI Direct Vs HDFC Securities

NRI Trading Terms

NRI Account NRI 3-in-1 Account NRI Demat Account NRI Trading Account Repatriation More Glossary Items...

History of Chittorgarh

History of Chittorgarh Maharana Pratap Meera Bai Panna Dhai Rani Padmini Jainism & Chittor (Hindi)

Tourism at Chittorgarh

Fort of Chittorgarh Photo Gallery Around Chittorgarh How to Reach

Chittorgarh City Info

Chittorgarh City Map Hotels / Resorts Sainik School Chittorgarh Cement Industry Hindustan Zinc

Search Chittorgarh.com:

Download Our Mobile App

Android App iOS App