False
Download Learnerz IAS app from the Play Store now! Download

$show=search/label/May%202022

 


Qualified Institutional Placement (QIP) UPSC NOTE

 

  • QIP is a mechanism for publicly traded companies to obtain capital without having to file formal documentation with market regulators.

  • In India and other Southeast Asian countries, the usage of QIPs is very widespread.

  • The main goal of QIP development is to protect India from becoming overly reliant on foreign finance to fuel its economic growth.

  • The Securities and Exchange Board of India (SEBI) enacted this rule to prevent enterprises from relying on foreign financing.

  • A publicly traded firm can issue equity shares, completely and partially convertible debentures, or any other security that is convertible to equity shares in a QIP.

  • QIP is a fast way for a publicly-traded firm to issue shares or convertible instruments to a small number of investors.

  • Only institutions or Qualified Institutional Buyers (QIBs) can participate in a QIP issuance, unlike an Initial Public Offerings (IPOs) and Follow on Public Offers (FPOs).

  • Mutual funds, domestic financial institutions including banks and insurance firms, venture capital funds, foreign institutional investors, and others are all examples of QIBs

Importance of QIPs

  • QIPs are less time-consuming for the issuing company than IPOs and FPOs

    • It simply needs to file a placement document with the stock exchanges, which merely contains details about the issue.

  • In comparison to an IPO or an FPO, a QIP is also a less expensive way to raise funds.

  • Unlike an IPO, where an anchor investor is required to stay committed for a month, QIPs have no such limits.

Importance of QIPs

  • QIPs are subject to significantly fewer legal restrictions and regulations (in comparison to FPO), making them far more cost-effective.

  • There are also fewer legal fees and no costs associated with listing overseas.


Benefits of QIP

  • Time-saving

  • Easy Regulations

  • Easy Process of Investing

  • Cost-effective


COMMENTS

Name

Amritsar,1,April 2024,301,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,54,February 2024,228,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,67,Govt Schemes,2,GST,1,History,2,Home,3,IAS Booklist,1,Important News,71,Indian Economy,46,Indian History,2,Indian Polity,56,International Organisation,12,International Relations,58,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,March 2024,238,May 2022,17,May 2024,233,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,September 2023,205,UPSC CSE,111,
ltr
item
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Qualified Institutional Placement (QIP) UPSC NOTE
Qualified Institutional Placement (QIP) UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
https://www.learnerz.in/2024/04/qualified-institutional-placement-qip.html
https://www.learnerz.in/
https://www.learnerz.in/
https://www.learnerz.in/2024/04/qualified-institutional-placement-qip.html
true
4761292069385420868
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content