I-BANKS SEEK RELAXED PRICING NORMS FOR QIPS
MUMBAI: Investment banks have approached the Securities and Exchange Board of India (Sebi) to ease pricing norms for raising funds through qualified institutional placements (QIPs) amid disruptions in business activity due to the outbreak. “Merchant banks have written to Sebi seeking relaxations in the pricing formula for QIPs. The market volatility seen in recent times restricts their ability to price offerings more attractively,” said an investment banker, requesting anonymity. Under existing norms, companies can offer investors a discount of up to 5% on the floor price. “We are asking for the discount to be increased to up to 10%,” said a second banker, also requesting anonymity.