What is QIP

Definition: QIP or Qualified Institutional Placement is largely a fund raising tool for the listed companies.

Description: QIP is a process which was introduced by SEBI so as to enable the listed companies to raise finance through the issue of securities to qualified institutional buyers (QIBs).

Earlier, since raising finance in the domestic market involved a lot of complications, Indian companies used to raise funds from the overseas markets. So to prevent this, SEBI introduced this process so as to make the raising of funds easier in the domestic market.


Also See: QIB, Preferential Allotment, American Depositary Receipts (ADR)



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