Sebi doubles retail investor cap to 2 lakh

Sebi doubles retail investor cap to 2 lakh

Mumbai: Market regulator Securities and Exchange Board of India (Sebi ) on Monday doubled the investment limit for retail investors in an initial share sale offer to Rs2 lakh.

The board approved categorising all investors putting in up to Rs2 lakh to buy shares through a public offer as retail investors, Sebi chief C B Bhave told reporters in Mumbai.

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 in 2005, the limit for retail investors was raised from 0,000 to 1,00,000 in public issues.

Sebi allows price discount for retail investors and company discount participating in initial public offers and follow-on offers. This discount is offered to attract retail investors into the market.

However, the market regulator deferred a decision on overhauling the country’s corporate takeover norms as it needs more time to study the proposals of a panel, its chief said on Monday. Sebi may discuss the proposals in the next board meeting.

In July, A Sebi panel had proposed changes to takeover rules that are likely to offer better terms to minority shareholders, but could cut down the number of deals in the near term.