SEBI at its board meeting yesterday doubled the limit for retail investors from Rs 1 lakh to Rs 2 lakhs. There have been various views on this for and against the same, but I believe this is good for the markets and would make retail subscription more meaningful. For the supporters some information like inflation, rising disposable income and reducing value of rupee are factors which support the raising of the limit. Those against it believe that this would lead to cornering of share by few people. The average per application in the retail category is Rs 60,000-Rs 65000 while the limit at the upper end is Rs 1,00,000.
The first issue to probably use this new limit would be Power Grid Corporation which opens on the 9th of November.
