The 10 IPL franchises will be allowed to retain a maximum of six players from their previous squads, including one Right To Match (RTM) card.
Teams were allowed up to four retentions in the last mega auction held in 2022.
'The six retentions/RTMs can have a maximum of five capped players (Indian and overseas) and a maximum of two uncapped [Indians] players,' the IPL stated.
In case a franchise wants to retain five capped players, the following amounts will be deducted from the purse:
For the first three retentions: Rs 18 crore (Rs 180 million), Rs 14 crore (Rs 140 million) and Rs 11 crore (Rs 110 million). For the next two: Rs 18 crore (Rs 180 million) and Rs 14 crore (Rs 140 million).
Each uncapped player retained will be valued at Rs 4 crores (Rs 40 million) and this amount will be subtracted from the Rs 120 crore (Rs 1.2 billion).
The teams that retain five capped players and one uncapped player will have their purse size cut down by Rs 79 crore (Rs 790 million) and will go into the auction with just Rs 41 crore (Rs 410 million).
If a franchise retains four capped and two uncapped players, it will lose Rs 65 crore (Rs 650 million) from its purse.
However, a franchise will not be able to use the RTM card at the mega auction if they retain 6 players.