The Hindu Business Line : CII for hike in share application amount limit for retail investors

In order to give greater leeway for retail participation in initial public offerings (IPOs), the Confederation of Indian Industry has suggested increasing the share application amount limit for retail investors from Rs 1,00,000 to Rs 10,00,000.

On the recent over-subscription of the retail portion to lesser extent compared to the over-subscription from the high net worth individual quota leading to multiple applications from investors, the chamber said a feasible solution to alleviate the practice of multiple applications under the retail quota would be to increase the value limits for retail investors. The chamber also said that having a retail quota in IPO issues was necessary to avoid unequal distribution of wealth and would help with equity in wealth creation.

The chamber observed that retail investors had participated in large numbers in the recent IPOs. With growing incomes, it was the right time to redefine the term retail investor and increase the value limits used to define the retail investor.

More Stories on : IPOs | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
SBI MF unveils debt fund series

UTI MF tops mutual fund league tables

Kalpataru Power raises Rs 347 cr

Orient Paper: High on turnaround hopes

Sugar stocks heading south

Bulls prevail

Bank stocks up on move to revive UWB

`Policy on participatory notes to continue'

Principal Global to invest in emerging markets

Quantum MF sets store by direct-to-investor approach

Auto, IT stocks, mid-caps buoy sentiment

Spice Telecom plans IPO by year-end

CII for hike in share application amount limit for retail investors

New SEBI Executive Director