A few years ago, the Securities and Exchange Board of India (SEBI) introduced the qualified institutional placements (QIP) programme to allow companies to make offers through qualified institutional buyers (QIBs). One of the requirements of QIPs is only companies compliant with the listing agreement can make a QIP. Since many companies in the government and private sectors do not comply with the minimum public shareholding norms, they could not raise funds through the QIB route. The institutional placement programme (IPP) will help such companies make an offer to QIBs. Now, companies can auction their shares on the stock exchanges. The market regulator, SEBI, has made some changes that are expected to have a bearing on the capital markets. The SEBI has permitted the IPP and offer of sale of shares through stock exchanges.
Source: Economic Times
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