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

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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).

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3 Comments

3. Nagamee   I Like It. |Report Abuse|  Link|Mar 15, 2010 2:14:53 PMReply
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).
2. SWAPNIL   I Like It. |Report Abuse|  Link|Oct 7, 2009 1:36:53 PMReply
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.
1. Jimmy   I Like It. |Report Abuse|  Link|Jul 9, 2008 4:34:19 PMReply
because an investor making an investment of above Rs. 1 lacs shall be treated as an HNI

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