QIP

QIP

Subject: Economics

Context : Max Health net debt fell to ₹544 crore following a Qualified Institutional Placement (QIP) from ₹2,102 crore recorded in previous year quarter, the company said in a statement.

Concept :

• Qualified institutional placements (QIPS) are a way to issue shares to the public without going through standard regulatory compliance.
• QIPs instead follow a looser set of regulations but where allottees are more highly regulated.
• The practice is mostly used in India and other Southeast Asian countries.
• QIPs were created to avoid dependency on foreign resources for raising capital.
• Qualified institutional buyers (QIBs) are the only entities allowed to purchase QIPs.

QIB’s

• An investor is dubbed a qualified institutional buyer (QIB) if they are thought to require less regulatory protection than unsophisticated investors.