Qualified Institutional Placement - QIP

AAA

DEFINITION of 'Qualified Institutional Placement - QIP'

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

INVESTOPEDIA EXPLAINS 'Qualified Institutional Placement - QIP'

Prior to the innovation of the qualified institutional placement, there was concern from Indian market regulators and authorities that Indian 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 QIP guidelines were introduced to encourage Indian companies to raise funds domestically instead of tapping overseas markets.

RELATED TERMS
  1. American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a ...
  2. American Depositary Share - ADS

    A U.S. dollar-denominated equity share of a foreign-based company ...
  3. Dalal Street

    A term that refers to the Bombay Stock Exchange, the major stock ...
  4. Securities And Exchange Board Of ...

    The regulatory body for the investment market in India. The purpose ...
  5. Participatory Notes

    Financial instruments used by investors or hedge funds that are ...
  6. Foreign remittance

Related Articles
  1. American Depositary Receipt Basics
    Economics

    American Depositary Receipt Basics

  2. I live in the U.S. How can I trade stocks ...
    Investing

    I live in the U.S. How can I trade stocks ...

  3. Is there a difference between ADR and ...
    Investing

    Is there a difference between ADR and ...

  4. Why are big foreign companies considering ...
    Investing

    Why are big foreign companies considering ...

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center