Qualified Institutional  Buyer(QIB)

Investor groups like banks, insurance firms & mutual funds, with substantial resources & expertise, vital for stabilizing new securities & enhancing liquidity.

Qualified Institutional Buyers Examples

Examples of QIBs: Asset management companies, hedge funds, commercial banks, insurance companies, and pension funds. In India: SBI, LIC, HDFC MF.

How Qualified Institutional Buyers Work?

QIBs invest big in capital markets, especially in IPOs and FPOs, influencing trends and pricing. Their confidence attracts other investors.

Advantages and Disadvantages of a QIB

Pros: Exclusive deals, negotiation power, market stabilization, efficient pricing, etc. Cons: Market dominance, complex investments, concentration of power, etc.

Regulations on Qualified Institutional Buyers

In India, SEBI regulates Qualified Institutional Buyers, setting eligibility criteria, IPO allocations, disclosure requirements, and investment limits.

Difference Between QIB And Accredited Investor

QIBs are approved by SEBI to invest in Indian securities, while Accredited Investors are typically sophisticated with substantial net worth and investment expertise.


Difference Between QIB And Accredited Investor

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

Difference Between QIB And Accredited Investor

QIBs meet SEBI net worth criteria, whereas accredited investors are individuals or entities with substantial assets.

Investment Thresholds

Difference Between QIB And Accredited Investor

QIBs access IPOs, FPOs, private placements, while accredited investors invest in alternative funds, Venture Capital, and private equity.

Types of Investments

Qualified Institutional  Buyer List

The QIB list includes major banks (HDFC, ICICI), large insurers (LIC), renowned mutual funds (SBI, HDFC MF), and foreign portfolio investors meeting SEBI criteria.