On May 02, 2025, the Securities and Exchange Board of India (“SEBI”) issued a Consultation Paper inviting public comments and suggestions on proposals aimed at rationalizing the Placement Document requirements under the Qualified Institutions Placement (“QIP”) framework (“Consultation Paper”).[1] Stakeholders and members of the public are encouraged to submit their views to SEBI latest by May 23, 2025.
QIP is a fundraising route available to listed companies for raising capital from Qualified Institutional Buyers (“QIBs”). In light of SEBI’s recent streamlining of the rights issue process, by reducing disclosure obligations and expediting timelines, similar rationalization is now being considered for QIPs.
SEBI notes that listed companies already comply with extensive periodic disclosure requirements under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI LODR Regulations), and relevant corporate and financial information is publicly accessible. Consequently, SEBI is proposing to review and potentially reduce the mandatory disclosures under Schedule VII of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations) to eliminate duplication in the Placement Document.
[1]https://www.sebi.gov.in/reports-and-statistics/reports/may-2025/consultation-paper-on-rationalization-of-placement-document-for-qualified-institutions-placement_93777.html