Faster QIPs norms for firms by month-end: Damodaran

Faster QIPs norms for firms by month-end: Damodaran
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First Published: Tue, Oct 09 2007. 05 16 PM IST
Updated: Tue, Oct 09 2007. 05 16 PM IST
PTI
Mumbai: The norms for faster clearance of Qualified Institutional Placements (QIPs), used by corporates to raise money from market, will be ready by this month-end, capital market regulator Sebi said on 9 October.
“The primary market advisory committee of Sebi, at a meeting yesterday (8 October), cleared a package of proposal to ease issuances of QIPs,” Sebi chairman M Damodaran said at a Ficci-IIFT symposium here.
“By end of this month, we will have entire framework in place when the Board approves the proposal,” Damodaran said, adding around 30 companies can raise fast track money when the norms are in place.
Sebi’s fast-track QIPs clearance will be based on the well-known seasoned issuers or WKSIs model followed in the US market and India will be only the second country to introduce it and first in the emerging markets.
“The Indian economy has generated certain pace, the growth story will continue no matter what happens on political scene, unlike in the past when there was co-relation, today economy is less susceptible to day-to-day changes,“ Damodaran said in response to a question on relationship between stock markets and politics.
The Sebi chief, who recently received an award, instituted by a media house, for initiating policy changes gave hints of going firm with the proposal to scrap entry load for direct applications for open-ended mutual funds.
“So far, we have received positive response from the investors,” Damodaran said while responding to the Sebi proposal to scrap entry load for direct applications for open-ended mutual funds.
“Advice and selling function has to be separated over a period of time,” he said while speaking about mis-selling of products by agents to those who are not able to understand certain products.
“Sebi will go for a nationwide campaign to educate investors,” Damodaran said, adding the regulator had set up the Investors’ Protection Fund three months back.
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First Published: Tue, Oct 09 2007. 05 16 PM IST
More Topics: Sebi | Damodaran | Ficci | IIFT | QIP |