Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today doubled the investment limit for retail investors in an initial share sale offer to Rs2 lakh, reports PTI.
The board approved categorising all investors putting in up to Rs2 lakh to buy shares through a public offer as retail investors, SEBI chief CB Bhave told reporters here.
SEBI, in its draft guidelines in August, had proposed to raise the ceiling for retail investors to Rs2 lakh in public issues. Way back in 2005, the limit for retail investors was raised from Rs50,000 to Rs1,00,000 in public issues.
The market watchdog allows price discount for retail investors and company discount participating in initial public offers (IPOs) and follow-on public offers (FPOs).
This discount is offered to attract retail investors into the market.
In another related development, the market regulator has deferred a decision to amend the takeover code as it said that it needs “additional time” to look into the finer aspects of the same.