Multiple choice general knowledge

If an investor can invest 1 lakh or less in an IPO, then the investor is categorized as

  1. Anchor Investor

  2. Institutional Investor

  3. HNI

  4. Retail Investor
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In Indian IPO regulations, investors who can apply for shares worth up to Rs 1 lakh (100,000) are classified as Retail Individual Investors (RIIs). This category is designed to encourage small individual participation. Anchor investors invest much more (minimum Rs 10 crore), HNIs apply for more than Rs 2 lakh, and institutional investors are entities like banks and mutual funds.

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