March 02, 2024 01:51 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Delhi court orders Bloomberg to take down 'defamatory' article against Zee | 9 injured as IED blast rocks Bengaluru's Rameshwaram Cafe, CM Siddaramaiah confirms | India expresses 'deep shock' over Israeli soldiers killing civilians at Gaza aid distribution point | 'Raised issues of state': Mamata Banerjee meets PM Modi at Raj Bhavan in Kolkata | Two SFI leaders among those arrested in connection with Kerala student death case
SEBI explores broadening QIB definition to allow debt market investments by universities and urban local bodies QIB
Image: wikipedia.org

SEBI explores broadening QIB definition to allow debt market investments by universities and urban local bodies

India Blooms News Service | @indiablooms | 16 May 2023, 10:07 pm

If the consultation paper issued by the market regulator SEBI is approved, it could enable higher educational institutions, urban local bodies, and Micro Units Development & Refinance Agency (MUDRA) to participate as Qualified Institutional Buyers (QIBs) in investing in debt securities, Moneycontrol reported.

These institutions may be required to provide self-certification of their expertise in evaluating investments and may also consider seeking assistance from external experts for evaluation purposes. However, the responsibility for the investment will ultimately lie with the respective institution.

SEBI has released a consultation paper seeking suggestions to broaden the scope of qualified institutional buyers (QIB) in the debt market. The objective is to include additional categories of investors, thereby reducing the cost of fundraising and promoting greater participation in the market.

At present, qualified institutional buyers (QIBs) are defined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, which includes various entities such as mutual funds, venture capital funds, foreign portfolio investors, public finance institutions, and more.

The consultation paper aims to expand the definition of QIBs specifically for investing in debt securities. By broadening the types and categories of investors, it is expected to provide access to a wider range of investment opportunities in the primary issuance market and promote fairness within the bond market.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.