Introduction of Guidelines for “Qualified Institutions placements”
In order to make Indian markets more competitive and efficient and as a step towards reducing the export of the capital market, SEBI has amended SEBI (DIP) Guidelines, 2000, to permit listed companies to raise funds from domestic markets by making placements of securities with Qualified Institutional Buyers. The provisions in the guidelines, with respect to this placement viz., pricing, disclosure, lock-in, validity of resolution, tenure of convertible securities and other procedural aspects, etc. have been to a large extent aligned with the existing provisions prevalent for GDR/ FCCB offerings. The companies which are (i) listed in Stock Exchanges having nation wide trading terminals and (ii) are satisfying the minimum public holding requirements specified in the listing agreement will be eligible to raise funds through “Qualified institutions placements (QIPs)”.
The full text of the Circular is available on our website, www.sebi.gov.in.
Mumbai,
May 8, 2006