 "Sebi for including family trusts, NBFCs in QIB segment")
The Securities and Exchange Board of India (Sebi) has proposed including 'systematically important' non-bank financial companies (NBFCs) and some registered family trusts in the qualified institutional buyers (QIB) category.
The move will put such entities at a par with institutional investors like banks and mutual funds (MFs). Further, the regulator has suggested any other entity registered with Sebi and having a minimum net worth of Rs 500 crore may also be considered a QIB.
Currently, QIBs are defined under Sebi regulations as institutional investors generally perceived to possess expertise and the financial muscle to evaluate and invest in capital markets.
In a new proposal, Sebi has said the definition of QIBs "may be extended to include systematically important NBFCs as per Reserve Bank of India guidelines and family offices/trusts, subject to such family offices/trust registering itself as alternate investment funds."
The move will put such entities at a par with institutional investors like banks and mutual funds (MFs). Further, the regulator has suggested any other entity registered with Sebi and having a minimum net worth of Rs 500 crore may also be considered a QIB.
Currently, QIBs are defined under Sebi regulations as institutional investors generally perceived to possess expertise and the financial muscle to evaluate and invest in capital markets.
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The existing QIBs include public financial institutions like scheduled commercial banks, MFs, foreign institutional investor and venture capital funds.
In a new proposal, Sebi has said the definition of QIBs "may be extended to include systematically important NBFCs as per Reserve Bank of India guidelines and family offices/trusts, subject to such family offices/trust registering itself as alternate investment funds."