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What Does Qualified Institutional Placement - QIP Mean?

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

nvestopedia expIains Qualified Institutional Placement - QIP
Prior to the innovation of the qualified institutional placement, there was concern from ndian market
regulators and authorities that ndian 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 QP guidelines were introduced to
encourage ndian companies to raise funds domestically instead of tapping overseas markets.


Read more: http://www.investopedia.com/terms/q/qip.asp#ixzz1a0H1stvv

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