Understanding Qualified Institutional Buyers (QIBs) in India’s Capital Markets

Qualified Institutional Buyers (QIBs) are investment institutions who buy the shares of a company on a large scale. Qualified Institutional Buyers are those Institutional investors who are generally perceived to possess expertise and the financial proficiency to evaluate and to invest in the Capital Markets.

According to Regulation 2(1) of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, Qualified Institutional Investors comprises of —

1. a mutual fund, venture capital fund, Alternative Investment Fund and foreign venture capital investor registered with SEBI;
2. a foreign portfolio investor other than individuals, corporate bodies and family offices;
3. a public financial institution;
4. a scheduled commercial bank;
5. a multilateral and bilateral development financial institution;
6. a state industrial development corporation;
7. an insurance company registered with the Insurance Regulatory and Development Authority;
8. a provident fund with minimum corpus of twenty five crore rupees;
9. a pension fund with minimum corpus of twenty five crore rupees;
10. National Investment Fund set up by Government of India;
11. insurance funds set up and managed by army, navy or air force of the Union of India;
12. insurance funds set up and managed by the Department of Posts, India;
13. Systemically important non-banking financial companies.