The NII Full Form in the Share Market is Non-Institutional Investor. When individuals subscribe to an Initial Public Offering (IPO), they are effectively bidding for the company’s shares, but the final allotment is at the company’s discretion. Those who bid for shares worth more than Rs. 2 lakhs are classified as Non-Institutional Investors (NIIs).

Features of the NII Category in Share Trading

In an IPO, 15% of the total offer is reserved specifically for NIIs. They have the flexibility to withdraw their bids up until the allotment date, but cannot place bids at the cut-off prices. NIIs are categorized into two types: small Non-Institutional Investors (sNII), who bid up to Rs. 10 lakhs, and big Non-Institutional Investors (bNII), who bid over Rs. 10 lakhs. All NIIs must be registered with the Securities and Exchange Board of India (SEBI).

Who Falls Under the NII Category?

The NII category includes resident and non-resident Indian individuals, Hindu Undivided Families, resident Indian companies, corporate bodies, societies, trusts, and scientific institutions. The allotment of shares among NIIs varies based on their classification as small or big investors. Understanding the NII Full Form in the Share Market helps in navigating the IPO process and managing investment strategies effectively.