Monday, October 25, 2010

SEBI increases Retail Investor limit in IPO

SEBI increases Retail Investor limit for IPO Investment to Rs.2 Lakhs

Retail investors are elated as Securities and Exchange Board of India (SEBI) Chairman CB Bhave on Monday increased the investment limit in initial public offer (IPO) and follow-on offer (FPO) to Rs 2 lakh from current Rs 1 lakh.

Now, this is a good news for the retail investors. I mean up to now, you could invest maximum up to Rs.1 lakh but now you can invest up to Rs.2 lakhs in IPO.

I think this is really a good move by SEBI. This is because the inflation rate in India is rising in India year after year and that’s why just Rs.1 lakh of Investment is very low for the retail investors to invest in large IPOs like Coal India.

Indian Capital market is growing like anything and the new generation IPOs are very very huge in size and that’s why it is necessary to increase this limit for the retail investors.

Many retail investors earn lots of money only by subscribing the IPOs. And that’s why I am sure that SEBI’s this move will definitely make the retail investors happy.

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