RII NII And QIB Difference Explained


In the Indian markets, Stock Market Investor is divided into three types of categories called RII NII, and QIB. All these types of Investors have different types of facilities and some rights which also help each other with deadlines and investments. Let’s determine in detail what is the difference between RII NII and QIB.

Full Form :

  • RII – Retail Individual Investor
  • NII – Non-Institutional Investor
  • QIB – Qualified institutional buyer

RII NII and QIB Differences

Retail Individual Investor (RII)

The Retail Individual Investor is a general investor who makes his own investments and can buy and sell funds from Indian markets whether it is a Mutual Fund or an Equity Share through an Exchange.

Key Points of Retail Individual Investor :

  • Indian individuals can apply for up to two lakhs in the NRI (Non-Resident Indian) and HUF (Hindu Undivided Family) IPOs under the Retail Individual Investor category.
  • 35% of the IPO in a retail category is reserved for Retail Individual investors. It is determined by the company. It can be less than 35%.
  • Retail investors are entitled to charge a cut-off price

Allocation process :

  • If the IPO is not oversubscribed in the Retail Individual Investor category, then all applications are considered complete and all are allotted shares.
  • In the Retail Individual Investor category, equity shares are allocated according to the lots.
  • Retail Investor can apply for 12 to 15 lots, it is based on the IPO Issue Price
  • Shares of Retail Investor are allotted in their Demat accounts.

Non-Institutional Investor (NII) :

Non-institutional investors (non-institutional investors) are those who apply to buy or sell an investment in equity through an institution or a large brokerage bank, real estate agents, etc., or subscribed by large institutions and large companies. It Goes in which bids are made more than Rs.200000.

Key Points of Non-Institutional Investor :

  • Non-institutional investors are done by large companies, institutions, large trusts, etc.
  • Non-institutional investors can apply for more than Rs.200000.
  • 15% reservation in non-institutional investor IPO is reserved.
  • The non-institutional investor is not required to register with SEBI.
  • All investors investing above 200000 are brought under the Non-Institutional Investor category.

Allocation process :

  • If the IPO is oversubscribed by the Non-Institutional Investor, it is allocated the random li.
  • Under this quota, if the IPO is subscribed 100 times and 100 applications have been received then all the shares will be allotted one by one.
  • Non-Institutional Investor is highly subscribed because its size is small.
  • Non-Institutional Investor are not entitled to bid cut-off
  • Non-institutional investors are eligible to withdraw their bids on the day of allotment.

Qualified institutional buyer (QIB) :

Qualified institutional buyers are large firms or associations with individual entities that market their money to invest the capital of a country’s large funds or large companies and follow all the regulations of the Securities and Exchange Board of India SEBI here And invest their capital after carefully evaluating the financial background

Qualified institutional buyer key points :

  • These are done by public and financial institutions, commercial banks, foreign funds, etc.
  • SEBI registration is required to apply in this category.
  • 50% of the IPO offer is reserved for QIB.
  • QIBs are mostly represented by small investors who invest in insurance companies and pension schemes.
  • QIBs are not entitled to charge a cut-off price.

Allocation process :

Shares are allocated according to the large size of lot size to those applying in QIB, which are placed for a long period.

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