Big NBFCs eligible for QIB quota in IPOs: FM

Major non-banking finance companies (NBFCs) will now be eligible for quota reserved for qualified institutional buyers in IPOs, bringing them at par with banks and insurers.
Presenting the Budget for the fourth time in the current government, Finance Minister Arun Jaitley said it is "proposed to allow systemically important NBFCs regulated by RBI and above a certain net worth, to be categorised as Qualified Institutional Buyers (QIBs) by Sebi at par with banks and insurance companies, making them eligible for participation in IPOs with specifically earmarked allocations".
"This will strengthen the IPO market and channelise more investments," he added.
Along with this, the government will introduce a common application form for registration, opening of bank and demand accounts, and issuance of PAN for Foreign Portfolio Investors (FPIs).

Regulators Sebi and RBI along with the Central Board of Direct Taxes (CBDT) will jointly put in place the necessary mechanisms and procedures.
This will greatly enhance operational flexibility and ease of access to Indian capital markets, Jaitley said.
The minister also proposed that commodities and securities derivative markets will be further integrated by integrating the participants, brokers, and operational frameworks.