InvestorQ : How are RII and HNI clients categorized in the Indian stock market?
Ashoka Patkar made post

How are RII and HNI clients categorized in the Indian stock market?

Answer
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1 month ago


The categories of Retail Individual Investor (RII) and High Net-worth Individual (HNI) is specific to a book building issue (IPO) in the stock markets. They can be explained as follows-

Retail Individual Investor (RII)
Resident Indian Individuals, NRIs, and HUFs who apply for less than Rs2 lakh in an IPO under the RII category.
Not less than 35% of the Offer is reserved for the RII category.
NRI or HUF who applying in an IPO with less than ₹2,00,000 can apply in the RII category.
RII category allows bid at cut-off price.

High Net-worth Individual (HNI)
An individual who applies for over ₹2 Lakhs in an IPO falls under this category.


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Dhwani Mehta answered.
1 month ago


Normally, in the case of IPOs investors less than Rs.2 lakhs are classified as retail and above that as HNIs.