Sebi may expand definition of QIB for debt securities

The Securities & Exchange Board of India is planning to expand the definition of qualified institutional buyers (QIB) to widen the potential investor base for issuers of debt securities.

The market regulator has proposed to include multistate cooperatives with net worth of more than Rs 500 crore, non banking financial companies and housing finance companies, pension Funds (including overseas pension funds, NPS Trust, Employee Provident Fund Organization), refinancing agencies such as MUDRA,
reinsurance companies, small finance banks and other SEBI regulated entities with net worth of more than Rs 500 crore.


QIBs are an important source of funding for issuers seeking to raise funds through private placement of listed debt securities. QIBs subscribed around 94% of the total funds raised through issuance of corporate bonds by the way of private placement.

SEBI said it had been receiving representations that the definition of the term in order to deepen the market.

It is seeking public comments on the matter