Qualified Institutional Placement - QIP

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.

BREAKING DOWN '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. Securities And Exchange Board Of ...

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

    Financial instruments used by investors or hedge funds that are ...
  3. India ETF

    An exchange-traded fund that is based on a basket of securities ...
  4. Indian Employment Credit

    A monetary incentive offered by the federal government for employers ...
  5. Foreign Institutional Investor ...

    An investor or investment fund that is from or registered in ...
  6. Private Placement

    The sale of securities to a relatively small number of select ...
Related Articles
  1. ETFs & Mutual Funds

    An Introduction To The Indian Stock Market

    Emerging markets like India are fast becoming engines for future growth. Find out how to get in on the ground floor.
  2. Retirement

    Indian Temp Workers are Basically Paying for Your Retirement

    H-1B workers in the U.S. pay social security taxes but see none of the benefits. The American government basically told India to just deal with it.
  3. ETFs & Mutual Funds

    Top 3 ETFs for Investing in India

    Find out which exchange-traded funds are poised to perform the best with the continued rise of the Indian economy as a major emerging market.
  4. Investing

    Bombay Stock Exchange CEO Ashish Chauhan on India Rising

    India's largest stock exchange is hitting its stride. We talk with CEO Ashish Chauhan in New York.
  5. ETFs & Mutual Funds

    INDA: iShares MSCI India ETF

    Learn about the iShares MSCI India exchange-traded fund, which invests in equities of Indian companies and is suitable for risk-tolerant investors.
  6. Retirement

    How Much Money Do You Need to Retire in India?

    Retirees will find their savings can go quite far in India. The real challenge for many Americans will be obtaining visas and authorizations.
  7. Markets

    An Introduction To The Indian Stock Market

    Most trading in the Indian stock market occurs through its two exchanges – the Bombay Stock Exchange and the National Stock Exchange.
  8. Trading

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  9. Retirement

    Can You Retire in India with $200,000 in Savings?

    India's cost-of-living ranks among the lowest in the world, but retiring there presents some challenges unrelated to finances.
  10. Markets

    The Funds Keep Flowing Into Indian Tech Startups

    Investors are increasingly turning their attention to Indian tech startup companies. Billions of dollars are flowing into the startup sector in India.
RELATED FAQS
  1. What risks does a Foreign Institutional Investor (FII) face?

    Read about the types of risks that a foreign institutional investor faces when trading in Indian stock exchanges and dealing ... Read Answer >>
  2. How do mutual funds work in India?

    Find out how mutual funds work in India, including what types of funds are available, how they are structured and how they ... Read Answer >>
  3. Is short selling allowed in India?

    In March, 2001, the Securities and Exchange Board of India (SEBI) banned short selling in the Indian stock market. The ban ... Read Answer >>
  4. How can an individual investor get involved in FDIs (foreign direct investments) ...

    Understand what the term foreign direct investment (FDI) means, and learn how individual investors can get involved in FDI ... Read Answer >>
  5. When was the Bureau of Indian Affairs created?

    Formed on March 11, 1824, the Bureau of Indian Affairs is the oldest operating bureau within the United States Department ... Read Answer >>
  6. What are the most common market indicators to follow the Indian stock market and ...

    Learn about the most common market indicators used to follow the Indian stock market, including its two major exchanges: ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center