Qualified Institutional Placement

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Qualified Institutional Placement - QIP

What Does Qualified Institutional Placement - QIP Mean?


A designation of a securities issue given by the Securities and Exchange Board of India (SEBI) that
allows an Indian-listed company to raise capital from its domestic markets without the need to submit
any pre-issue filings to market regulators. The SEBI instituted the guidelines for this relatively new
Indian financing avenue on May 8, 2006.

Investopedia explains Qualified Institutional Placement - QIP


Prior to the innovation of the qualified institutional placement, there was concern from Indian market
regulators and authorities that Indian companies were accessing international funding via issuing
securities, such as American depository receipts (ADRs), in outside markets. This was seen as an
undesirable export of the domestic equity market, so the QIP guidelines were introduced to encourage
Indian companies to raise funds domestically instead of tapping overseas markets.

Qualified Institutional Buyer - QIB

What Does Qualified Institutional Buyer - QIB Mean?


Primarily referring to institutions that manage at least $100 million in securities including banks,
savings and loans institutions, insurance companies, investment companies, employee benefit plans,
or an entity owned entirely by qualified investors. Also included are registered broker-dealers owning
and investing, on a discretionary basis, $10 million in securities of non-affiliates.

Investopedia explains Qualified Institutional Buyer - QIB


QIBs are eligible to participate in the Rule 144A market.

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