Retailers where allowed to invest only upto 1 lakh in IPO until now and if you wanted to invest more they would try to invest in various family names and try to get the IPO pie , If you try to invest more than 1 lakh then you would be considered as HNI and the chance of allotment will go less as normally only 15 % of the IPO size was alloted to HNI , but 35 % was alloted to retailers.One more thing if you would have invested above 1 Lakh you would have not got the 5 % discount that you would have got in Coal India now which was only for the retailers but not for the HNI.
Finally SEBI made all these decisions.
- Sebi doubles the investment limit for retail investors in IPOs and FPOs to Rs 2 lakh |
- There is no change in retail investors’ quota in public offers |
- In case the preferential allotment to promoters is cancelled, there will be a one-year lock-in period
- For insurance cos looking to hit the capital market, Sebi has added more disclosures to the framework wherein the insurer needs to put in the risk factors upfront in the offer document
- They dint make any decision on the Takeover Code