Sebi mulls rationalising placement document for QIP
New Delhi, Markets regulator Sebi on Friday proposed to rationalise the content of the placement document of Qualified Institutions Placement (QIP) by prescribing only the relevant information regarding the issue. Presently, in QIPs the issuer is required to disclose the details in the placement document as prescribed under ICDR (Issue of Capital and Disclosure Requirements) norms.
ADVERTISEMENT Such disclosures are detailed in nature and preparing a lengthy placement document is a time-consuming exercise that results in duplication of information, which is already available in the public domain.
In its consultation paper, the regulator has revised the content of placement document.
Explaining the rationale for the proposed revision, Sebi said that QIPs are issued to Qualified Institutional Buyers (QIBs) who are sophisticated investors and possess the expertise and resources to take an informed investment decision independently. "These investors are generally well-versed with the issuer's business operations, financials and industry positions and therefore may not require the same level of aggregation of detailed disclosures as may be necessary in a public offering to retail investor," it added. The regulator has proposed to provide a detailed breakdown of capital -- authorised, issued, and subscribed -- considering outstanding convertible securities. It suggested that paid-up capital should be shown before the issue, after the issue and after conversion (if applicable).
ADVERTISEMENT With regards to financial information, Sebi has proposed to include summary extracts of audited consolidated financials -- last financial year along with comparative year. Besides, it suggested to add latest limited review statements not older than 6 months. To avoid duplication of data already filed with stock exchanges, the regulator has proposed for reference detailed audited reports instead of repeating them.
ADVERTISEMENT On management discussion and analysis disclosure, the regulator has suggested to remove this section as it's not required in other capital raising modes like rights or preferential issues. For industry and business description, Sebi has suggested to keep it brief and in summary form as QIP investors are assumed to be informed and don't require extensive details.
ADVERTISEMENT For board and senior management details, Sebi has suggested to align disclosures with IPO or rights issue formats to avoid ambiguity. To streamline the document for institutional investors, Sebi has suggested for summary inclusion instead of full repetition. It has proposed allowing inclusion of key summaries and cross-referencing instead of full replication of financials and legal texts.
ADVERTISEMENT The markets regulator has proposed that legal proceedings disclosed in the placement document should be presented in a clear tabular format. Only material litigations should be included. To decide what is "material", Sebi suggested using financial thresholds. A case is considered material if its impact exceeds 2 per cent of the issuer's turnover or net worth, as per the latest financial statements, or 5 per cent of the average profit or loss after tax from the past three years. Alternatively, companies should use their own materiality policy, as long as it's disclosed in the document. Sebi has suggested no changes with regards to disclosing dividend history for the past three years, with organisational structure, shareholding pattern, taxation, auditor information and wilful defaulters/fraudulent borrowers.
The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals by May 23.
Before this, rights issue process was reviewed by Sebi to rationalize the content of the letter of offer and with an objective to reduce the timelines for completion of rights issue.
(You can now subscribe to our ETMarkets WhatsApp channel)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
an hour ago
- The Hindu
Biocon raises ₹4,500 crore through QIP
Biocon said it completed its Qualified Institutions Placement (QIP) and raised ₹4,500 crore through the issuance of 13,63,63,635 equity shares of face value ₹5 each to eligible qualified institutional buyers at the issue price of ₹330 per equity share (including a premium of ₹325 per equity share). The QIP, which opened on June 16 and closed on June 19, witnessed robust investor interest from a diverse group of domestic and international investors, underscoring strong confidence in Biocon's growth prospects, said the company on Friday. Siddharth Mittal, CEO and Managing Director, Biocon Limited, said, 'The strong response to our QIP reflects deep investor conviction in Biocon's differentiated strategy and consistent execution. This capital raise further strengthens our balance sheet, enabling us to invest in innovation, expand global access to lifesaving biopharmaceuticals, and advance our purpose of delivering affordable healthcare solutions that address pressing health inequities worldwide.' According to the company, this fundraise, the first equity fundraise done by Biocon since its IPO in 2004, demonstrates the company's access to a diversified equity pool of capital. The final order book was well diversified in terms of investor type across domestic mutual funds, insurance companies and foreign institutional investors. Some of the leading names who participated in the issue included SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Life Insurance, Nippon India Mutual Fund, Mirae Asset Mutual Fund, Aditya Birla Mutual Fund, Franklin Templeton, SBI General Insurance, Government Pension Fund Global and Blackrock, the biotech firm further said. The proceeds from the QIP would be utilised towards purchase of outstanding optionally convertible debentures issued by Biocon Subsidiary, Biocon Biologics Limited, from Goldman Sachs India AIF Scheme - 1 and Goldman Sachs India Alternative Investment Trust AIF Scheme – 2. Also, proceeds would be used for repayment, pre-payment or redemption, in full or in part, of certain outstanding financial instruments issued and/or borrowings availed by the company, and/or meeting other financial commitments of the company; and for general corporate purposes, as per the company.
Mint
an hour ago
- Mint
Retirement planning: Is this advisable to invest in solution-oriented mutual funds?
If you want to save for your retirement, it is feasible as well as advisable to invest in mutual funds across categories. Equity mutual funds enable long long-term wealth creation, debt schemes provide security. Additionally, investors can also allocate some funds to long term tax-saving instruments such as PPF, Senior Citizens Savings Scheme (SCSS) and Kisan Vikas Patra (KVP) for earning higher interest and saving tax at the same time. All in all, one needs to curate a portfolio of sorts to accumulate sufficient funds for the same. But what if you outsource the entire retirement plan to a fund manager by investing in a solution-oriented fund? Those who are not aware, solution oriented mutual funds refer to those schemes which have a lock-in period of at least 5 years or till retirement age, whichever is earlier, per the Sebi's categorisation of mutual fund schemes. There are a total of 29 such schemes with total asset size (assets under management) of ₹ 31,007 crore., as on May 31, 2025. Some of the large retirement funds include UTI Retirement fund ( ₹ 4,703 crore), Nippon India Retirement Fund ( ₹ 3,156 crore), HDFC Retirement Savings Fund ( ₹ 6,503 crore) and SBI Retirement Benefit Fund aggressive plan (2900 crore), reveals the data from Association of Mutual Funds in India (AMFI) as on June 19, 2025. Investing in retirement schemes is indispensable for investors to maintain the same standard of living after retirement as they had before it. 'Gone are the days when our parents were getting regular monthly pensions from the government. Nowadays most of people are from private jobs or running their own business. In today's world, when private jobs are not secured, there is no question of a pension from the employer. And that's made Retirement Planning more crucial,' says Preeti Zende, a Sebi-registered investment advisor and founder of Apna Dhan Financial Services. Soumya Sarkar, Co-founder of Wealth Redefine, says, 'Retirement-focused solution-oriented mutual funds can be a good choice for building a retirement corpus. These funds are designed for long-term goals, with a 5-year lock-in ensuring disciplined investing and shielding you from short-term market volatility. They offer a mix of equity (for growth) and debt (for stability), customised to your risk appetite, helping you accumulate wealth over time.' Those who want to curate their own portfolio can invest in a combination of mutual funds, opines Zende. 'It is better that you use a combination of diversified equity Mutual funds like large cap, flexicap and mid and small cap, along with EPF, PPF and NPS. So this portfolio will also take care of inflation-headed return, provide downside risk to the portfolio, and some income is tax-free,' adds Ms Zende. Visit here for all personal finance updates.
The Wire
4 hours ago
- The Wire
Algorithmic Trading's Next Frontier: Education and Responsible Adoption Amidst Regulatory Shifts
Algorithmic trading is rapidly reshaping global capital markets, transitioning from an institutional niche to a widespread force. Automated trading strategies now account for over half the volumes on major exchanges, with increasing accessibility for individual investors and financial professionals. This evolution, however, highlights a critical need for enhanced understanding, robust education, and clear regulatory frameworks to ensure market efficiency and investor protection. The momentum driving this shift is significant and quantifiable. The global algorithmic trading market was valued at an estimated USD 21.06 billion in 2024 and is projected to surge to USD 42.99 billion by 2030, reflecting a substantial 12.9% Compound Annual Growth Rate (CAGR) from 2025 to 2030. This impressive growth, according to Grand View Research, is largely propelled by the increasing integration of Machine Learning (ML) and Artificial Intelligence (AI) technologies into algorithmic trading solutions. As the market expands and technology advances, regulatory bodies globally are responding with clearer guidelines. Recent frameworks, such as those introduced by India's capital market regulator (SEBI) effective August 1, 2025, signal a universal commitment to formalizing algorithmic trading, particularly for retail participants. These initiatives aim to improve compliance and foster responsible adoption, thereby creating a more robust and secure ecosystem for automated strategies worldwide. "The advent of cloud infrastructure, coupled with the rise of AI, is generating immense interest in algorithmic trading," observes Nitesh Khandelwal, Co-founder and Director of QuantInsti. "While the evolving regulatory landscape aims to build a strong foundation for the adoption of technology and quantitative methods, there remains a critical need to bridge education gaps and provide access to the right tools and platforms for both professionals and new entrants." The increasing sophistication of financial technology, coupled with market growth, means that continuous skill development is no longer optional for market participants. Mastering the development, testing, and compliant deployment of algorithmic strategies is fast becoming an essential competency in modern finance. In direct response to this growing industry demand, organizations are stepping up to provide critical educational resources. For instance, QuantInsti is hosting a complimentary online session, "Build Your Quant Portfolio: First Steps into Algorithmic Trading," on Tuesday, June 24, 2025, at 8:30 AM EST (5:30 AM PST / 6:00 PM IST). This webinar will feature expert perspectives from seasoned practitioners including Jay Parmar (Quantitative Researcher, iRage), Mrinall Mahajan (Vice President at a leading global asset management firm), Tomás V. García-Purriños (Senior Asset Allocation Strategist at a prominent global bank's asset management division), and Rohan Mathews (Global Business Head, QuantInsti). The session aims to offer practical insights into developing data-driven trading strategies, understanding the role of machine learning in financial models, and navigating real-world career transitions within quantitative finance. This initiative reflects a broader industry movement to democratize access to advanced financial knowledge and cultivate a skilled workforce capable of navigating the complexities of automated markets. As algorithmic trading continues to reshape how capital markets operate, driven by significant market expansion and technological innovation, the emphasis on comprehensive education and adherence to evolving regulatory guidelines will be paramount for sustained growth and long-term industry stability. About QuantInsti: QuantInsti is a pioneering global algorithmic trading research and education institute. It focuses on empowering financial professionals and aspiring quants worldwide through educational programs and technology solutions, aiming to contribute to the global financial markets' growth and inclusion. (Disclaimer: The above press release comes to you under an arrangement with NRDPL and PTI takes no editorial responsibility for the same.). This is an auto-published feed from PTI with no editorial input from The Wire.
