Q.
What is QIP? How shall it affect stock market?
Asked by Shashikant Rai,
26 Jun '09 02:03 pm
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Answers (1)
1.
Qualified Institutional Placement, a method of raising equity by a listed company ,is a capital raising tool, whereby a listed company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a Qualified Institutional Buyer (QIB).
Apart from preferential allotment, this is the only other speedy method of private placement whereby a listed company can issue shares or convertible securities to a select group of persons. However, it scores over other methods, as it does not involve many of the common procedural requirements such as the submission of pre-issue filings to the market regulator
Answered by khan kk, 26 Jun '09 03:01 pm
Apart from preferential allotment, this is the only other speedy method of private placement whereby a listed company can issue shares or convertible securities to a select group of persons. However, it scores over other methods, as it does not involve many of the common procedural requirements such as the submission of pre-issue filings to the market regulator
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