share Market of new companies listed in IPO The participation of local retail investors has doubled in the last three years. During this digital transaction UPI ( unified payment interface) The number of users has almost doubled. Sebi has come up with a formula combining the increasing number of retail investors in the stock market and the popularity of UPI. Small and medium investors can now invest up to Rs. You can invest up to Rs 5 lakh. So far this limit is up to Rs 2 lakh.
Domestic retail investors are now paying Rs 2 lakh per application in public issue of shares and convertible securities through UPI, the popular medium of digital transactions. You can invest up to Rs 5 lakh. This means that investors will invest more only when they get more convenience and when more investment comes, the market will be strong.
Local investors needed for the market
How important is the market to local investors? You can get an idea from this. Between October 2021 and March 2022, when foreign investors invested Rs. When it sold 1.48 lakh crore shares, local investors did not buy much, which did not lead to further decline in the market. In IPO and convertible bonds Rs. This facility will be available on public issue on or after May 1, 2022, for investments up to Rs 5 lakh. NPCI, the developer of UPI, has also worked hard for this facility.
NPCI had suggested some changes in the system to facilitate the application process through UPI and by March 30, 2022, around 80% of the Self-Certified Syndicate Banks / Sponsor Banks / UPI Apps have implemented these provisions. The new move by SEBI will further increase the participation of domestic retail investors in IPOs and convertible bonds.
Retail investor participation more than doubled in IPO
Number of Retail Investors Per IPO Year
- 14.05 lakh in 2021-22
- 12.73 lakh in 2020-21
- 6.88 lakh in 2019-20
Rising Popularity of UPI (UPI Transactions in FY)
- In 2020-21 Rs. 41 lakh crore
- In 2021-22 Rs. 76 lakh crore
- In 2022-23 Rs. 100 lakh crore (estimated)
The number of registered investors in the country has doubled in two years (number of registered investors)
- 36 million in 2019
- 7.7 crore in 2021
- 10.20 crore in 2022 (till 7th April)