Market regulator SEBI has doubled the investment limit for retail investors in an initial public offer from Rs.1 lakh to Rs.2 lakh.
The board approved investors putting in up to Rs.2 lakh to buy shares through an initial public offer. The proposal is in line with the fact that annual inflation has soared from around 4% in 2005 to well over 10% in the recent past and also the number of investors has increased manifold. The limit for retail investors was raised from Rs 50,000 to Rs.1,00,000 in public issues in 2005.
This would also, reduce the numerous applications investors used to send in earlier, to enhance their chances of being allotted more shares. However, SEBI has postponed its decision on overhauling the country's corporate takeover norms as it needs more time to study the proposals.
The board approved investors putting in up to Rs.2 lakh to buy shares through an initial public offer. The proposal is in line with the fact that annual inflation has soared from around 4% in 2005 to well over 10% in the recent past and also the number of investors has increased manifold. The limit for retail investors was raised from Rs 50,000 to Rs.1,00,000 in public issues in 2005.
This would also, reduce the numerous applications investors used to send in earlier, to enhance their chances of being allotted more shares. However, SEBI has postponed its decision on overhauling the country's corporate takeover norms as it needs more time to study the proposals.
No comments:
Post a Comment