Question

Issue of securities, debt or equity, to a limited number of subscribers, such as banks, FIs, MFs and high net worth individuals, is called?

Q: Answer-Issue of securities, debt or equity, to a limited number of subscribers, such as banks, FIs, MFs and...

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 merchantinvestment banker, who brings together the issuer and the investors. As securities are allotted to a few investors and the general public does not have much stake in it, the securities offered in a private placement are exempt from the public disclosure regulations.