Who are RIIs, HNIs, NIIs, QIBs and Promoters in stock market?
By Admin | 28 Dec 2025 | 15 views
In the stock market—especially in IPOs and public
issues—investors are classified into specific categories based on investment
size, nature, and role. Below is a full, clear, and exam-oriented
explanation of Retail Investor, sNII, bNII, QIB, HNI, and Promoter:
1. Retail Individual Investor
(RII)
Meaning
A Retail Individual Investor is an individual who
applies for shares with a total application value up to ₹2,00,000 in an
IPO.
Key Features
- Invests
personal funds
- Can bid
at the cut-off price
- Allotment
done through lottery system if oversubscribed
- Limited
market influence
Examples
Salaried persons, students, small traders
2. HNI (High Net-Worth
Individual)
Meaning
An HNI is an individual who invests more than
₹2,00,000 in an IPO.
Key Features
- Large
investment capacity
- Cannot
bid at cut-off price
- Allotment
on proportionate basis
- Higher
risk tolerance
3. Non-Institutional Investors
(NII)
NII is a broad category that includes HNI investors,
and it is further divided into two sub-categories:
(a) sNII – Small
Non-Institutional Investor
Meaning
sNII are investors who apply for IPO shares with an
amount above ₹2,00,000 and up to ₹10,00,000.
Key Features
- Part of
NII category
- Proportionate
allotment
- No
cut-off price option
(b) bNII – Big
Non-Institutional Investor
Meaning
bNII are investors who apply for IPO shares with an
amount above ₹10,00,000.
Key Features
- Very
large application size
- Higher
allocation preference within NII category
- Proportionate
allotment
4. Qualified Institutional
Buyers (QIB)
Meaning
QIBs are financially sophisticated institutional
investors recognized by SEBI.
Key Features
- Invest
large amounts
- Cannot
bid at cut-off price
- Receive
the largest IPO allocation
- Professional
fund management
Examples
- Mutual
funds
- Banks
- Insurance
companies
- Foreign
Portfolio Investors (FPIs)
5. Promoters
Meaning
Promoters are the founders or
controlling shareholders of a company.
Key Features
- Hold
significant ownership stake
- Responsible
for company management and decisions
- Long-term
commitment to business
- Cannot
sell shares freely during lock-in period after IPO
Importance
High promoter holding builds investor confidence.
6. Comparison Table (Quick
Revision)
|
Category |
Investment Limit (IPO) |
Cut-Off Price |
Allotment Method |
|
Retail Investor (RII) |
Up to ₹2 lakh |
Allowed |
Lottery |
|
sNII |
₹2–10 lakh |
Not allowed |
Proportionate |
|
bNII |
Above ₹10 lakh |
Not allowed |
Proportionate |
|
HNI |
Above ₹2 lakh |
Not allowed |
Proportionate |
|
QIB |
No limit |
Not allowed |
Proportionate |
|
Promoter |
Existing owner |
Not applicable |
Not applicable |
7. In Simple Words
Retail investors invest small amounts, HNIs and NIIs invest large amounts, QIBs are big institutions, and promoters are the owners who run the company.
