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What are the different types of Investor categories in IPO?

The IPO Investors are broadly classified as follows:

  • Retail individual Investor (RII)
  • Retail individual investor means an investor who applies or bids for securities for a value of not more than Rs. 2,00,000.

  • Non-Institutional Investor (NII)
  • Non-Institutional Investors i.e. individuals/corporate, mean an investor who applies or bids for securities for a value of more than Rs 2,00,000.

  • Qualified Institutional Buyers (QIBs)
  • Qualified Institutional Buyers are those institutional investors who are generally perceived to possess the expertise and the financial capability to evaluate and invest in the capital markets. A ''Qualified Institutional Buyer'' can be:

    1. A public financial institution as defined in section 4A of the Companies Act, 1956.
    2. Scheduled commercial banks.
    3. Mutual Funds.
    4. Foreign institutional investor registered with SEBI.
    5. Multilateral and bilateral development financial institutions.
    6. Venture capital funds registered with SEBI.
    7. Foreign venture capital investors registered with SEBI.
    8. State Industrial Development Corporations.
    9. Insurance Companies registered with the Insurance Regulatory and Development Authority (IRDA).
    10. Provident Funds with minimum corpus of Rs 25 crores.
    11. Pension Funds with minimum corpus of Rs 25 crores.

These entities are not required to be registered with SEBI as QIBs.

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