This definition is based on the Securities and Exchange Board of India's (SEBI) guidelines.
A retail investor, as per SEBI's guidelines, is an individual investor whose investment in securities does not exceed ₹2,00,000. This classification plays a crucial role in determining the regulations and benefits available to such investors. In simpler terms, a retail investor is a small-scale investor who may not have extensive knowledge or experience in the financial markets. However, their participation in the market is vital for its overall functioning.
