A private placement and A Qualified Institutions Placement
is an issue of shares or of convertible securities by a company to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue.
This is a faster way for a company to raise equity capital.
A private placement of shares or of convertible securities by a listed company is generally known by name of preferential allotment.
A listed company going for preferential allotment has to comply with the requirements contained in Chapter XIII of SEBI (DIP) Guidelines pertaining to preferential allotment.
in SEBI (DIP) guidelines.which interalia include pricing, disclosures in notice etc, in addition to the requirements specified in the Companies Act.
is a private placement of equity shares or securities convertible in to equity shares by a listed company to Qualified Institutions Buyers only in terms of provisions of Chapter XIIIA of SEBI (DIP) guidelines.
The Chapter contains provisions relating to pricing, disclosures, currency of instruments etc.