A qualified institutional placement QIP occurs when the Securities and Exchange Board of India SEBI allows an Indian company to issue securities in India without providing preliminary filings regarding the issue.

QIPs are similar to private placements in the United States. Indian companies that are listed on an Indian stock exchange are generally eligible to offer QIPs only to qualified institutional buyers QIBs.

For example, an issuer can raise no more than five times its net worth via QIPs in a year.

It must also prepare a placement document containing relevant material disclosures, and a merchant banker must manage each QIP. QIPs help Indian companies raise capital in India, and in turn they help make Indian markets more competitive and efficient.

Definition of 'Qip' - The Economic Times

They have been around since about ; before that, Indian companies often tapped foreign markets via American depository receipts ADRs for capital. Our in-depth tools give millions of people across the globe highly detailed and thoroughly explained answers to their most important financial questions.

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What is Qualified Institutional Placement (QIP) -

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