Why is the cut-off price higher for retail OFS orders?

• A cut-off price is determined for the second day based on the bids received on the first day, and this becomes the floor price for retail bids.

1. Low institutional demand = low cut off price: - The cut-off price for retail bids may be the same as the institutional bids if there is a low demand for the OFS.

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2. High institutional demand = high cut off price: - If there is a strong institutional demand, the cut-off price for retail bids may be significantly higher.