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  • QIB

    Transféré par

    Robert Miller
    123 vues6 pages
    The document defines Qualified Institutional Buyers (QIBs) and discusses their advantages and disadvantages compared to other modes of raising funds. It states that QIBs are large institutions that manage at least $100 million in securities. The document outlines that QIBs have advantages like being less costly and allowing easier negotiation than public markets, but also have disadvantages like securities being less liquid and no readily available market price. It provides examples of entities that can qualify as QIBs, such as banks, insurance companies, and registered investment funds.

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    The document defines Qualified Institutional Buyers (QIBs) and discusses their advantages and disadvantages compared to other modes of raising funds. It states that QIBs are large institutions that manage at least $100 million in securities. The document outlines that QIBs have advantages like being less costly and allowing easier negotiation than public markets, but also have disadvantages like securities being less liquid and no readily available market price. It provides examples of entities that can qualify as QIBs, such as banks, insurance companies, and registered investment funds.

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    Attribution Non-Commercial (BY-NC)
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    123 vues6 pages

    QIB

    Transféré par

    Robert Miller
    The document defines Qualified Institutional Buyers (QIBs) and discusses their advantages and disadvantages compared to other modes of raising funds. It states that QIBs are large institutions that manage at least $100 million in securities. The document outlines that QIBs have advantages like being less costly and allowing easier negotiation than public markets, but also have disadvantages like securities being less liquid and no readily available market price. It provides examples of entities that can qualify as QIBs, such as banks, insurance companies, and registered investment funds.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme PPTX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 6

    Qualified Institutional Buyers

    Presentation by Group Q2

    Agenda
    Definition of QIP & QIB Who can be a QIB? Advantages & Disadvantages QIB Vs Other Modes of raising Funds

    QIB Definition
    A Qualified Institutional Buyer (or QIB), in law and finance, is a purchaser of securities that is deemed financially sophisticated and is legally recognized by security market regulators to need less protection from issuers than most public investors. Typically, the qualifications for this designation are based on an investors total assets under management as well as specific legal conditions in the country where the fund is located. Primarily referring to institutions that manage at least $100 million in securities including banks, savings and loans institutions, insurance companies, investment companies, employee benefit plans, or an entity owned entirely by qualified investors. Also included are registered broker-dealers owning and investing, on a discretionary basis, $10 million in securities of non-affiliates.

    QIP & QIB- Definition


    QIP: A private placement of equity shares or securities convertible into equity shares by a listed company to a qualified institutional buyer. QIB: They are those institutional investors who are perceived to possess expertise and the financial strength to evaluate and invest in capital markets.

    Who can be a QIB?


    Qualified Institutional Buyer can be:
    a) b) c) d) e) f) g) h) i) Public financial institution as defined in section 4A of the Companies Act, 1956; Scheduled commercial banks; Mutual funds; Foreign institutional investor registered with SEBI; Multilateral and bilateral development financial institutions; Venture capital funds registered with SEBI. Foreign Venture capital investors registered with SEBI. State Industrial Development Corporations. Insurance Companies registered with the Insurance Regulatory and Development Authority j) Provident Funds with minimum corpus of Rs.25 crores k) Pension Funds with minimum corpus of Rs. 25 crores

    Advantages & Disadvantages of QIB


    Advantages Less costly in terms of time and money The issuer need not reveal their confidential information Fewer investors-Terms are easier to negotiate Disadvantages No readily available market price for securities Securities are less liquid Smaller group of investors than in public markets

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