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Can I apply for the IPO in both in policy holder and in retail Category as HNI (more than 2 lacs)? OR is it restricted? please clarify

yes you can apply in both category in policy holder as well as in individual

Here's how you can apply...
1) Those who don't have any policy, and are not employee can apply only in Retail/HNI, for HNI there no discount.
2) Those who are employee and have policy can apply in
Retail + Policyholder + Employee or HNI + Policyholder + Employee
3) Those who have policy but are not employee can apply in
Retail + Policyholder or HNI + Policy holder