The International Financial Services Centres Authority (IFSCA) on March 06, 2026, issued the Consultation Paper on the Regulatory Framework for Preferential Issues and Qualified Institutions Placements.
The following has been stated namely: -
• The objective of this framework is to provide listed companies with a mechanism for raising capital through a fast-track, cost-effective, and streamlined process, simultaneously ensuring transparency, fair pricing, and protecting the interests of shareholders.
• The draft regulatory framework for preferential issues and QIPs were deliberated in the Standing Committee on Primary Markets (the Committee). The best practices in India and other global markets have been considered during the deliberations in the Committee. The draft regulatory framework for preferential issues and QIPs is based on recommendations of the Committee.
• The salient features of the proposed framework for preferential issues and QIPs are as under: -
o Preferential Issue means an issue of specified securities by a listed entity to any select person or group of persons on a private placement basis in accordance with this circular
o The “Relevant Date” for Preferential Issues/QIPs shall be as under: -
a. In case of a Preferential Issue, the date thirty days prior to the date on which the meeting of shareholders is held to consider the proposed Preferential Issue
b. In case of a QIPs of equity shares, the date of the meeting in which the board of directors of the issuer or the committee of directors duly authorised by the board of directors of the issuer decides to open the proposed issue
c. In case of a QIPs of eligible convertible securities, either the date of the meeting in which the board of directors of the issuer or the committee of directors duly authorised by the board of directors of the issuer decides to open the issue of such convertible securities or the date on which the holders of such convertible securities become entitled to apply for the equity shares.
