Individual investor to get higher limit in public issues
There is some good news for investors. The market regulator Securities and Exchange Board of India (SEBI) has issued a discussion paper on public issues, defining an individual investor for public issues. The discussion paper suggests the current investment limit of Rs 1 lakh for individual investors be enhanced to Rs 2 lakhs. It proposes changes to the Issue of Capital and Disclosure Requirements Regulations 2009.
Previously, individual investors in a public issue were defined as:
Fixed price issue: Individual investor is one who applies for allotment equal to or less than 10 marketable lots.
Book built issue : Individual Investor is one who applies for up to 1,000 securities. This definition of an individual investor did not differentiate between an individual investor who applies for 1,000 shares of Rs 530 each and one who applies for 1,000 shares of Rs10 each. It was decided to define an individual investor on the basis of amount applied for, instead of the number of shares applied for, and the guidelines were amended in August 2003 to provide that an individual investor is an investor who applies or bids for securities of a value of not more than Rs 50,000.
Written by admin on August 21st, 2010 with
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