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    Qualified Institutional Placements: Listed Company

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    Bhargav MK
    The document discusses Qualified Institutional Placements (QIPs), which allow listed Indian companies to privately place securities like equity shares or convertible debentures to Qualified Institutional Buyers. QIPs provide a speedy method for capital raising with fewer procedural requirements compared to other private placements. The Securities and Exchange Board of India introduced QIPs in 2006 to reduce dependence on foreign capital by allowing placements only to specified qualified institutional investors.

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    Qualified Institutional Placements: Listed Company

    Uploaded by

    Bhargav MK
    20 views4 pages
    The document discusses Qualified Institutional Placements (QIPs), which allow listed Indian companies to privately place securities like equity shares or convertible debentures to Qualified Institutional Buyers. QIPs provide a speedy method for capital raising with fewer procedural requirements compared to other private placements. The Securities and Exchange Board of India introduced QIPs in 2006 to reduce dependence on foreign capital by allowing placements only to specified qualified institutional investors.

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    QIPs

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    The document discusses Qualified Institutional Placements (QIPs), which allow listed Indian companies to privately place securities like equity shares or convertible debentures to Qualified Institutional Buyers. QIPs provide a speedy method for capital raising with fewer procedural requirements compared to other private placements. The Securities and Exchange Board of India introduced QIPs in 2006 to reduce dependence on foreign capital by allowing placements only to specified qualified institutional investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    20 views4 pages

    Qualified Institutional Placements: Listed Company

    Uploaded by

    Bhargav MK
    The document discusses Qualified Institutional Placements (QIPs), which allow listed Indian companies to privately place securities like equity shares or convertible debentures to Qualified Institutional Buyers. QIPs provide a speedy method for capital raising with fewer procedural requirements compared to other private placements. The Securities and Exchange Board of India introduced QIPs in 2006 to reduce dependence on foreign capital by allowing placements only to specified qualified institutional investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 4

    Qualified Institutional Placements

    QIP is a capital raising tool, primarily used in


    India whereby a listed company can issue equity
    shares, fully and partly convertible debentures or
    any securities other than warrants which are
    convertible to equity shares to a Qualified
    Institutional Buyer.
    Apart from preferential allotment, this is the only
    other speedy method of private placement
    whereby a listed company can issue shares or
    convertible securities to a select group of
    persons.
    QIP scores over other methods because the
    issuing firm does not have to undergo elaborate
    procedural requirements to raise this capital.
    Qualified Institutional Placements
    SEBI introduced the QIP process in May 2006 to
    prevent listed companies in India from developing
    an excessive dependence on foreign capital.
    The specified securities can be issued only to QIBs,
    who shall not be the promoters or related to the
    promoters.
    The placement document is placed on the websites
    of the stock exchanges and the issuer, with
    appropriate disclaimer to the effect that the
    placement is meant only for QIBs on private
    placement basis and is not an offer to the public.
    Qualified Institutional Placements
     A qualified institutional buyer shall mean:
    a. Public financial institution as defined in section
    4A of the Companies Act, 1956.
    b. Scheduled commercial banks
    c. Mutual funds
    d. FIIs registered with SEBI
    e. Venture capital funds registered with SEBI
    f. State Industrial Development Corporation
    g. Provident funds / Pension funds with minimum
    corpus of Rs 25 crores.
    Qualified Institutional Placements

    Benefits of QIPs
    Time saving

    Lesser formalities in rules & regulations

    Cost efficient

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