- According to NSE and BSE Circulars, retail investors are only allowed to place bids at the cutoff price or higher in an OFS.
RELATED FACTS: - - A cut off price is determined for the 2nd day on the basis of the bids received on the 1st day and this becomes the minimum bid price or cut off for retail bids.
- If there is strong institutional demand then the cut off price for retail bids may be significantly higher than floor price for non-retail bids and
- If there is low demand then the cut off price for the retail bids may be same or low than the floor price of day 1.
- No allocation to retail investors will be made if the bid price is less than the cut off price on T + 1 day.
- Those who applied in non-retail category on day one cannot reapply on the next day(T+1) in retail category.
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