Qualified Institutional Investors
This query is : Resolved
25 May 2009
sir,
pls explain the term Qualified institutional investors and retail investors...
pls explain the term Qualified institutional investors and retail investors...
25 May 2009
Hi,
These are investors having expertise in the market and are given some privileges as per the SEBI rules. Please read the below information and if you still have doubts contact me at srini.ca@gmail.com
The Securities and Exchange Board of India has defined a Qualified Institutional Buyer as follows:[3]
Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets. In terms of clause 2.2.2B (v) of DIP Guidelines, 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) Foreign institutional investor registered with SEBI;
e) Multilateral and bilateral development financial institutions;
f) Venture capital funds registered with SEBI.
g) Foreign Venture capital investors registered with SEBI.
h) State Industrial Development Corporations.
i) Insurance Companies registered with the Insurance Regulatory and Development Authority (IRDA).
j) Provident Funds with minimum corpus of Rs.25 crores
k) Pension Funds with minimum corpus of Rs. 25 crores
These entities are not required to be registered with SEBI as QIBs. Any entities falling under the categories specified above are considered as QIBs for the purpose of participating in primary issuance process.
The insertion of definition of "qualified institutional investor" enables identification of a class of "qualified institutional investors" who may be subject to a more liberal, enabling regulation regime. This would be particularly relevant in the context of private placements.
‘‘Qualified institutional investors (QIBs) make the payment on allotment. This is an international practice. Once QIBs make a commitment, they can’t go back on it
See this link for knowing important terms in Equity:
http://www.thehindubusinessline.com/iw/2005/07/17/stories/2005071701471400.htm
Rgds
These are investors having expertise in the market and are given some privileges as per the SEBI rules. Please read the below information and if you still have doubts contact me at srini.ca@gmail.com
The Securities and Exchange Board of India has defined a Qualified Institutional Buyer as follows:[3]
Qualified Institutional Buyers are those institutional investors who are generally perceived to possess expertise and the financial muscle to evaluate and invest in the capital markets. In terms of clause 2.2.2B (v) of DIP Guidelines, 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) Foreign institutional investor registered with SEBI;
e) Multilateral and bilateral development financial institutions;
f) Venture capital funds registered with SEBI.
g) Foreign Venture capital investors registered with SEBI.
h) State Industrial Development Corporations.
i) Insurance Companies registered with the Insurance Regulatory and Development Authority (IRDA).
j) Provident Funds with minimum corpus of Rs.25 crores
k) Pension Funds with minimum corpus of Rs. 25 crores
These entities are not required to be registered with SEBI as QIBs. Any entities falling under the categories specified above are considered as QIBs for the purpose of participating in primary issuance process.
The insertion of definition of "qualified institutional investor" enables identification of a class of "qualified institutional investors" who may be subject to a more liberal, enabling regulation regime. This would be particularly relevant in the context of private placements.
‘‘Qualified institutional investors (QIBs) make the payment on allotment. This is an international practice. Once QIBs make a commitment, they can’t go back on it
See this link for knowing important terms in Equity:
http://www.thehindubusinessline.com/iw/2005/07/17/stories/2005071701471400.htm
Rgds
25 May 2009
Qualified Institutional Investors is an American term, having nearly the same meaning as QIB in India as eloquently described by Srini above.
US Security laws reserve some issues only for QIIs - idea being QIIs are better placed to understand the risk of such investment opportunities. In India we do not have QIIs
US Security laws reserve some issues only for QIIs - idea being QIIs are better placed to understand the risk of such investment opportunities. In India we do not have QIIs
25 May 2009
Qualified Institutional Investors is an American term, having nearly the same meaning as QIB in India as eloquently described by Srini above.
US Security laws reserve some issues only for QIIs - idea being QIIs are better placed to understand the risk of such investment opportunities. In India we do not have QIIs
US Security laws reserve some issues only for QIIs - idea being QIIs are better placed to understand the risk of such investment opportunities. In India we do not have QIIs
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