In order to bring about more transparency, the stock market regulator, Securities & Exchange Board of India (SEBI), has made it mandatory for issuer companies to disclose the names of allottees in the qualified institutional placements (QIPs).
Stock exchanges have been advised to disclose on their websites the details of the investors in QIP – who have been 
allotted more than 5% of the securities offered through the QIP. Names and number of securities allotted to them are to be disclosed. The pre and post-QIP shareholding pattern of the issuer company will also be made available.
“Since there is no lock-in period for QIP’s, there is a general feeling that the qualified institutional buyers are using this route to make quick gains” says Prithvi Haldea, MD, Prime Database. He believes that the new rule to disclose investor names will make companies more responsible while placing their shares. Not to mention, the market will also know the nature of QIP investors. The new rule is to be applied from the immediate effect, as per the SEBI press release.
“The move will also bring QIP regulation in line with that of preferential allotments and allotment to anchor investors in an IPO,” says Jagannadham Thunuguntla, head of equity, SMC Capital. Over 60% of the domestic funds raised by Indian corporates in 2009 were through the QIP route
