What is the term used to describe the issuance of

Solution

Private placement is issuance of securities, debt or equity, to a limited number of subscribers, such as banks, FIs, MFs and high net worth individuals. Private Placement is arranged through a merchant/investment banker, who brings together the issuer and the investor(s).  In order to enhance transparency and increased disclosures, listed companies should disclose the utilization of proceeds raised through preferential issuance and qualified institutional placements in their annual reports. Currently, such disclosure is only required in case of public issuance.