New Delhi, Feb 1 : Systemically important non-banking finance companies (NBFC) with above a certain net worth would also be categorised as Qualified Institutional Buyers (QIB) to participate in initial public offerings, Finance Minister Arun Jaitley proposed on Wednesday.
Presenting the Budget for 2017-18, Jaitley said banks and insurance companies are currently classified as QIBs by Securities and Exchange Board of India (Sebi), and are eligible for participation in IPOs with specifically earmarked allocations.
As per the annexure to the budget speech, the government is now proposing to allow systemically important NBFCs regulated by Reserve Bank of India (RBI) and above a certain net worth, to be categorised as QIBs.
This will strengthen the IPO market and channelise more investments.
The other measures proposed by the government is integrating the commodities and securities derivative markets by integrating the participants, brokers, and operational frameworks.
Steps will be taken for linking of individual demat accounts with Aadhar.
