Investor groups like banks, insurance firms & mutual funds, with substantial resources & expertise, vital for stabilizing new securities & enhancing liquidity.
Examples of QIBs: Asset management companies, hedge funds, commercial banks, insurance companies, and pension funds. In India: SBI, LIC, HDFC MF.
QIBs invest big in capital markets, especially in IPOs and FPOs, influencing trends and pricing. Their confidence attracts other investors.
Pros: Exclusive deals, negotiation power, market stabilization, efficient pricing, etc. Cons: Market dominance, complex investments, concentration of power, etc.
In India, SEBI regulates Qualified Institutional Buyers, setting eligibility criteria, IPO allocations, disclosure requirements, and investment limits.
QIBs are approved by SEBI to invest in Indian securities, while Accredited Investors are typically sophisticated with substantial net worth and investment expertise.
Definition
QIBs are defined by SEBI for Indian securities regulations, whereas accredited investors, not explicitly defined in India, may refer to HNIs in some contexts.
Regulatory Framework
QIBs meet SEBI net worth criteria, whereas accredited investors are individuals or entities with substantial assets.
Investment Thresholds
QIBs access IPOs, FPOs, private placements, while accredited investors invest in alternative funds, Venture Capital, and private equity.
Types of Investments
The QIB list includes major banks (HDFC, ICICI), large insurers (LIC), renowned mutual funds (SBI, HDFC MF), and foreign portfolio investors meeting SEBI criteria.
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