Different types of investors in stock exchange: Learn more about the various kinds of investors and their habits in share market and mutual funds.
Material in this Post.
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1. Retail Individual Investors:
As per the SECURITIES AND EXCHANGE BOARD OF INDIA(Concern of Capital and Disclosure Requirements) Regulations, 2009, retail private financier indicates a financier who applies or bids for specified securities for a worth of not more than Rs. There is no bar on the existing shareholding of the financier. In case an issuer making the public problem through book building process, minimum 35% of the net deal to the public must be set aside to retail private financiers.
2. Certified Institutional Bidders (QIBs):
As per the SECURITIES AND EXCHANGE BOARD OF INDIA (Concern of Capital and Disclosure Requirements) Laws, 2009, “ qualified institutional buyer” suggests:
- A mutual fund, equity capital fund and foreign equity capital investor signed up with SEBI
- A public financial institution as specified in area 4A of the Business Act, 1956
- A scheduled industrial bank
- A multilateral and bilateral development banks
- A state industrial advancement corporation
- An insurance company signed up with the Insurance Regulatory and Advancement Authority
- A provident fund with minimum corpus of twenty five crore rupees
- A pension fund with minimum corpus of twenty five crore rupees
- Foreign institutional investor signed up with SEBI
- National Investment Fund
- Insurance coverage funds set up and handled by army, navy or air force of the Union of India
- Insurance funds established and managed by the Department of Posts, India
In case of an IPO Book building QIB are allocated minimum 50% of the overall problem.
3. High Net worth Individuals:
In the context of an IPO, a retail investor who gets shares of more than Rs. 2 lakhs is considered as High Net worth Individuals.
4. Non institutional investors:
Based On the SECURITIES AND EXCHANGE BOARD OF INDIA (Concern of Capital and Disclosure Requirements) Regulations, 2009, Non institutional investor means a financier other than a retail private investor and certified institutional buyer. They are allocated 15% of the overall problem in case of book structure problem in India.
5. Anchor Investor:
The principle of anchor financier was introduced in 2009 by SEBI. As per the SECURITIES AND EXCHANGE BOARD OF INDIA (Concern of Capital and Disclosure Requirements) Laws, 2009, Anchor Financier indicates a certified institutional purchaser who makes an application for a worth of 10 crore rupees or more in a public concern made through the book building process in accordance with SEBI guidelines.
10 crore and draw in investors to public deals prior to they struck the market to infuse self-confidence. In Book constructed IPOs, Up to 30 % of the overall problem size can be allocated to anchor financiers.
Advised Articles
- What are the ways in which an IPO can be initiated??
- What is noting, its Significance and Benefits of listing
- SME IPO
- Are you an SME? Know your Eligibility
- What is IPO Grading?
- What does the Recognised Stock Market do?
- Various Types of Orders Put in Stock Market
- Delisting of Shares
- Earnings Per Share (EPS)
- What is Book structure?
- Repaired price method
