The capital markets regulator, Securities and Exchange Board of India (SEBI) is all set to ease rules for qualified institutional placements (QIPs) in order to help companies circulating resources professionally and in a gainful manner.

At a conference on Monday, the SEBI’s primary market advisory group has approved a package of proposals to alleviate issuances of QIPs.

Sebi Chairman M Damodaran said that the fresh rules are likely to come into effect by the end of this month after the panel formally okays the pans,.

QIPs let companies to lift funds by selling shares to qualified institutional buyers (QIBs).

This instrument was set up last year to depress companies from tapping the global depository receipts (GDR) marketplace as they were resulting in gradual export of home markets.

Since its opening, a total of 36 companies comprising IDFC, UTI Bank, GVK Power, Max India, Punj Lloyd and Phoenix Mills raised nearly Rs 14,000 crore via QIPs.

At a Ficci seminar, Damodaran said recently, Sebi also permitted companies having a fine record and known with capitalists to lift funds via rights and follow-on issuing in a fast track manner without getting documents vetted.

In the first phase, about 30 companies would qualify for the fast track issuance for rights and FPOs, the Sebi chief said. This is a first-of-its-kind process for any rising market and only the second nation (after US) to include a file-and-raise money plan.

The fast-track issuing for rights and FPOs is mainly based on the well-known seasoned issuers (WKSIs) model accompanied by the Securities and Exchange Commission of the US. Damodaran stated that Sebi was in the process of bringing out additional products intended at sophisticated investors.

The specialist committee on derivatives products, led by Prof M R Rao, Dean of Indian School of Business, Hyderabad, will pass on its testimonials shortly.