Consider the following statements with reference to the Qualified Institutional Placement (QIP):
1. QIP is a route available to both listed and unlisted companies for raising capital.
2. Retail investors are excluded from participating in QIP issues.
3. It contributes about one third of the total fund mobilisation through equity.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 1 and 3 only

Question

Consider the following statements with reference to the Qualified Institutional Placement (QIP):
1. QIP is a route available to both listed and unlisted companies for raising capital.
2. Retail investors are excluded from participating in QIP issues.
3. It contributes about one third of the total fund mobilisation through equity.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 2 and 3 only
(d) 1 and 3 only

ONLiNE UPSC · Accepted Answer

Statement 1 is not correct: QIP is available only to listed companies in India.As per SEBI Regulations, only listed companies can raise funds via QIP by issuing securities to Qualified Institutional Buyers (QIBs).

Statement 2 is correct: QIP is specifically meant for Qualified Institutional Buyers (QIBs) such as mutual funds, insurance companies, banks, and foreign institutional investors.Retail investors are not eligible to invest via this route.

Statement 3 is correct: According to SEBI&rsquo;s Annual Report 2023-24, QIP contributed 35% (nearly one-third) of total equity fund-raising in India in recent years, making it a dominant mode for listed companies to mobilize funds.

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M Question 1	⏱ 0
Consider the following statements with reference to the Qualified Institutional Placement (QIP): 1. QIP is a route available to both listed and unlisted companies for raising capital. 2. Retail investors are excluded from participating in QIP issues. 3. It contributes about one third of the total fund mobilisation through equity. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 and 3 only (d) 1 and 3 only