Non-institutional Investors (NII) are typically the

Solution

NIIs are investors who apply for shares worth more than ₹2 lakh in an IPO. NIIs are typically high-net-worth individuals (HNIs), NRIs, corporations, trusts, or other bodies.  Rules for Non-Institutional Investors (NII) in IPOs 1. Minimum and Maximum Investment Limits – Minimum investment ₹2,00,000 (applications below this amount are considered under the retail category). No upper limit exists. 2. Reservation of Shares –15% of the total IPO size is set aside for NIIs. 35% is reserved for retail investors and 50% for QIBs.  3. Sub-categorization within NII – In recent IPOs (since 2022), the NII category is often divided into two parts for better distribution: – Small NIIs (sNII): Applications between ₹2 lakh and ₹10 lakh. – Big NIIs (bNII) – Applications above ₹10 lakh. This ensures that even smaller high-net-worth investors get a chance at allotment, not just the biggest players. One-third of the portion available to NIIs will be reserved for sNIIs, and two-thirds of the portion available to NIIs will be reserved for bNIIs.