INCREASING THE LIMIT FROM 1 LAC TO 2 LAC IS NOT A GOOD STEP. GENERALLY A PERSON HAS ATLEAST 3 ACCOUNTS (SELF- SPOUSE-HUF). IF HE IS ALLOWED TO INVEST 6 LACS IN THREE NAMES HE REMAINS NO MORE RETAILER, ULTIMATELY SHARES WILL GO TO HNIS ONLY. I THINK THIS IS NOT A GOOD STEP.
i think this will not increase retail participation becouse like me many retail investor bid for one to five lot in an ipo and we got less share or get nothing this leads in not applying for ipo because out money is blocked for 14 days and getting no share is not good. increase in retail category from 100000 to 200000 will surly benifit to HNI investors who are good chances of getting share in retail category by applying for 200000 rs and small investor like me will get nothing benifit fom it becouse we will apply for same amount. for increasing retail participation in ipo in my point share should be alloted in full to those investors who applied for minimum lot such as one or two lots this will increase confidense that investors appling for small amount will get share surly and this increase retail participation thanking you
I think proposed sebi move is good for retail invester who are applying with limited demat account by this move people can get more shares for listing gain.
Sir because if you talk fundamentals and listing goes against fundamentals(which happens mostly), maximum people here start using abusive language for each other.
this is the reason everybody wants to be safe. any one who has knowledge to grey market prices and pick 2-3 articles from google search can become analyst here.
if u write against a company quoting its fundamentals but because of speculation there is a grey market premium, some other guy will start using abusive language.
here everyone wants to quote about listing and generally listing is as per grey market prices. so if u want to be hero here just have a close watch on grey market and if prices are good there than write articles saying this is good ipo otherwise public will be against u.
i also wrote that ASTER is a bad issue (by some other name) but when it listed i received abusive comments. so here what we can do is to give opinions as per grey market only who cares what happens 3 months down the line.
Market regulator SEBI today proposed to double the investment limit for retail investors to Rs 2 lakh in public issues, a move that will enable individuals to aggressively participate in primary issues of companies.
"It is proposed to ... enhance the limit prescribed for defining a retail individual investor in a public issue from the existing Rs 1 lakh to Rs 2 lakh," the Securities and Exchange Board of India (SEBI) said in a draft regulation on which it invited comments from stakeholders by September 3.
The current limit of Rs 1 lakh for retail investors was fixed over five years ago in March 2005.
Giving justification for its proposal, SEBI said the limit for retail investors needed to be enhanced in view of the increase in inflation rate from 4 per cent in 2005 to around 12 per cent currently and rise in the BSE Sensex from 8,000 points to about 18,000 points during the same period.
"This means that the retail individual investors now buy a lesser number of securities with Rs one lakh than they would buy with the same amount in 2005," it added.
"It is a very timely and logical step. The lukewarm public response to some recent offers may also have made SEBI put the proposal," SMC Capitals equity head Jagannadham Thunuguntla said.
all are traders here...no one talks fundamentals...and valuations with support opinions. unless a thing looks 2-3 times i dont care about 10-20% up down.....
I have recently earned some profit in eil and sks but i think now we should be careful as some companies will try to exploit the market atmosphere and price their ipo at extremely high prices.
i have not yet checked the fundamentals but as per readings of fellow boarders it apperas that its a loss making company. that means we should not invest in this ipo untill there is a good grey market price say 3000 per app.
Market regulator Securities and Exchange Board of India (SEBI) has issued a discussion paper on public issues, defining retail investor for public issue.
The discussion paper suggests the current investment limit of Rs 1 lakh for retail investors should be enhanced to Rs 2 lakh. SEBI has invited comments from public by September 3, 2010.
(from money control)
I think it is good for long term Retail investors. frankly speaking, I was expecting such a move from SEBI, as more retail money will come into the market. The 1 lakh limit was set long ago, which needed a revision.
At the same time, one should apply a lot of mind, as the risk involved is more, to identify dud from the good, keep looking at fundamentals of the co.