Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
16 June 2009Can any one tell me the difference between QIP (Qualified Institutional Placement) and Preferential Allotment under SEBI Guidelines as far as raising of fund in a Listed Company is concerned?
Thanks & Regards
ajay
(service)
(55 Points)
Replied 30 April 2011
sir,
There are following differences in Preferential Allotment and QUP.
1. preferential allotment can be to any selected group of Persons including QIB. while in case of QIP allotment can be only to QIB on private placement basis.
2. Preferential alloment (issue) attracts provisions of Chapter VII to SEBI (ICDR) Regulation, 2009 and QIP attracts the provisions of Chapter VIII to SEBI (ICDR) Regulation, 2009
3. in case of QIP there is a requirement of minimum listing of security of which class QIP is proposed, for a minimum period of 1 year. there is no as such requirement in case of Prererential alootment.
I hope this will satisfy ur query
Regards
CS AJAY KHANDELWAL
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