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Qualified Institutional Placements (QIPs) are viable route of raising money for companies. It is being viewed as a new mantra to ensure a vibrant onshore private placement equity market.
The Securities Exchange Board of India (SEBI), with effect from 2006, inserted Chapter XIIIA into the SEBI (Disclosure & Investor Protection){DIP} Guidelines, 2000, to provide guidelines for Qualified Institutional Placements.
After it was felt that several Indian companies were using American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and Foreign Currency Convertible Bonds (FCCBs) routes to raise funds, resulting in an "export of domestic equity markets", SEBI allowed listed companies to raise funds from the domestic markets through Qualified Institutional Placement of securities with no pre-issue filings with the regulator. This move was to encourage Indian companies to raise funds from domestic markets instead of tapping overseas markets.
The guidelines provided that QIPs may be made for securities which can be issued as equity shares or any securities other than warrants which are convertible into or exchangeable with equity shares and will be called specified securities. In the case of related instruments convertible into equity, such conversion will have to take place within five years from the date of the issue and should be fully paid up.
Delhi based Spentex Industries Limited was the first company to raise funds through QIPs followed by Apollo Tyres, Asian Electronics, Kalpataru Power and Ashapura Minechem Limited. It was felt that cost being a major factor is likely to shift companies' preference from ADRs/GDRs/FCCBs; and over a period of time the funds raised through QIPs will overtake the mobilization from ADR/GDR/FCCB route. While Edelweiss Capital can claim first mover advantage given that they were the first company to complete QIP of Rs 46.59 crores for Spentex Industries Limited, a BSE listed company and Kotak Investment Bank soon followed close behind doing $75 million placement for Kalpataru Power.
Though Edelweiss and Kotak appear to have set the ball rolling, many other merchant bankers are increasingly indicating their willingness to promote this route as a viable tool for raising funds over depository receipts (ADRs/GDRs), follow-on issues and preferential allotment of equity shares by a company. www.sebi.gov.in/faq/pubissuefaq.pdf
What else can I help you with?
What browser is not compatible with e-QIP?
NCSA Mosiac
What army regulation covers policy and procedural guidance for services within e-QIP?
There is no specific army regulation that covers policy and procedural guidance for services within e-QIP. However, the Department of Defense (DoD) has a Defense Manpower Data Center (DMDC) e-QIP Program Office that provides guidance and support for the e-QIP system. This office has developed user guides and manuals to assist users with services within e-QIP.
What is meant by the term QIP?
The term QIP means "qualified institutional placement". This is a tool for capital raising, where a listed company or stock market can issue equity shares and others.
What regulatory guidance provides both policy and procedural guidance for services within e-QIP?
the regulatory guidance provides both policy and procedural guidance for services within e-QIP is
What regulatory guidance provides bothe policy and procedural guidance for services within e-QIP?
the regulatory guidance provides both policy and procedural guidance for services within e-QIP is
What browsers are not compatible with e-QIP?
NCSA Mosiac
What jcavs user levels does not have access to the jcavs interface with e-qip?
10
What provides policy and procedural guidance within e QIP?
AR 380-67, Personnel Security Program
What provides policy and procedural guidance within e-QIP?
AR 380-67, Personnel Security Program
What is the program e-QIP used for?
e-QIP, or electronic Questionnaire for Investigations Processing, is an online system used by the U.S. government to collect information for background investigations. It is primarily employed for individuals applying for security clearances or other sensitive roles within federal agencies. The program streamlines the application process, allowing users to fill out and submit their personal information securely and efficiently. e-QIP enhances the accuracy and speed of background checks by digitizing the data collection process.
What brand of toner has the best results?
The QIP Brand of toner is one of the best reviewed and cheapest toner brands, but it can depend on your printer.
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