As you all are aware SEBI has increased Retail Limit to 2 Lacs from present 1 Lac .
your comments are welcome for this -
why SEBI might have done it ?
will it be benifitial to Retail Investors?
my comments are :
-Few years back Retail Limit was 50,000 without any IT PAN required - it resulted in thousands of bogus application by a single person
-Then this Limit was increased to 1 lacs with no IT PAN required upto 50000 - result same frequency of bogus application upto 50000
-Then IT PAN was made compulsory for IPO application of any amount - result grey market operators started borrowing demat a/c on some fixed amount , popularly known as KOSHTAK rates , offering amount for application of 1 Lac ,allotment made for any quantity.
-Now Retail Limit increased to 2 Lac - may have results like less demat a/c borrowing/offering on KOSHTAK rates - reason one clause of INCOME TAX " APPLICAIONS IN IPO ABOVE 1 LAC WILL BE UNDER THEIR SCANNER" this clause was introduced to check HNI investments in IPO which are hardly 5000 application , while Retail Applications are sometimes upto 10 to 15 Lacs
I feel that actual Retail Investors having limited demat a/c in family will be benifitted with better allotment chances.
Please post your comments
your comments are welcome for this -
why SEBI might have done it ?
will it be benifitial to Retail Investors?
my comments are :
-Few years back Retail Limit was 50,000 without any IT PAN required - it resulted in thousands of bogus application by a single person
-Then this Limit was increased to 1 lacs with no IT PAN required upto 50000 - result same frequency of bogus application upto 50000
-Then IT PAN was made compulsory for IPO application of any amount - result grey market operators started borrowing demat a/c on some fixed amount , popularly known as KOSHTAK rates , offering amount for application of 1 Lac ,allotment made for any quantity.
-Now Retail Limit increased to 2 Lac - may have results like less demat a/c borrowing/offering on KOSHTAK rates - reason one clause of INCOME TAX " APPLICAIONS IN IPO ABOVE 1 LAC WILL BE UNDER THEIR SCANNER" this clause was introduced to check HNI investments in IPO which are hardly 5000 application , while Retail Applications are sometimes upto 10 to 15 Lacs
I feel that actual Retail Investors having limited demat a/c in family will be benifitted with better allotment chances.
Please post your comments