InvestorQ : What are the different types of IPO investors and how is allotment is made to each of these categories?
Chandralekha Desai made post

What are the different types of IPO investors and how is allotment is made to each of these categories?

Answer
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NISHA Nayak answered.
2 years ago


Investors are broadly classified under following categories-:

(i) Retail individual Investor (RIIs)

(ii) Non-Institutional Investors (NIIs)

(iii) Qualified Institutional Buyers (QIBs)

“Retail individual investor” means an investor who applies or bids for securities for a value of not more than Rs. 2,00,000.

“Qualified Institutional Buyer” shall mean:

(i) A mutual fund, venture capital fund and foreign venture capital investor registered with the Board;

(ii) A foreign institutional investor and sub-account (other than a sub-account which is a foreign corporate or foreign individual), registered with the Board;

(iii) A public financial institution as defined in section 4A of the Companies Act, 1956;

(iv) A scheduled commercial bank;

(v) a multilateral and bilateral development financial institution;

(vi) a state industrial development corporation;

(vii) an insurance company registered with the Insurance Regulatory and Development

Authority;

(viii) a provident fund with minimum corpus of twenty five crore rupees;

(ix) a pension fund with minimum corpus of twenty five crore rupees;

(x) National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India published in the Gazette of India;

(xi) insurance funds set up and managed by army, navy or air force of the Union of India;

(xii) insurance funds set up and managed by the Department of Posts, India

Investors who do not fall within the definition of the above two categories are categorized

as “Non-Institutional Investors”