2.18Who are retail investors?
Time-sensitive: The ₹2 lakh retail IPO limit is as of November 2026. Rules and rates change, so check the official source before acting.
1What is it?
Retail investors are individuals who invest their own money, usually small amounts, through a broker.
2Why does it exist?
They are the largest group by number. India now has many crore demat accounts. SEBI gives retail investors special protections, like a reserved portion in IPOs.
3Stock market example
In IPOs, a "retail individual investor" applies for up to ₹2 lakh. Applying above that puts you in the NII (non-institutional) category.
4Quick revision
- Retail = individual investors.
- Biggest group by count.
- Have reserved IPO quotas (up to ₹2 lakh per application).
5Knowledge check
Q1. Are you a retail investor if you invest ₹5,000 through Groww?Show answer
Yes.
Q2. What is the retail IPO application limit?Show answer
Up to ₹2 lakh.
Q3. Why does SEBI protect retail investors?Show answer
They have less information and money than institutions.