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Under Private Placement Company sell securities to some selected institutions. From the following identify such institution.
  • a)
    LIC
  • b)
    GIC
  • c)
    UTI
  • d)
    All of these
Correct answer is option 'D'. Can you explain this answer?
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Under Private Placement Company sell securities to some selected insti...
Private placement includes sale of stock shares or bonds to pre selected investors. These pre selected investors include wealthy individual investors, banks and other financial institutions, mutual funds, insurance companies, and pension funds.
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Under Private Placement Company sell securities to some selected insti...
Private placement includes sale of stock shares or bonds to pre selected investors. These pre selected investors include wealthy individual investors, banks and other financial institutions, mutual funds, insurance companies, and pension funds.
So, correct option is 'D' because all the above three options comes under the above mentioned investors....
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Under Private Placement Company sell securities to some selected insti...
Understanding Private Placement Companies
Private placement companies primarily sell securities to a select group of institutional investors rather than the general public. This method is often used by companies to raise capital efficiently while maintaining more control over who invests in their business.
Institutions Involved in Private Placements
The institutions listed in the question—LIC, GIC, and UTI—are all significant players in the investment landscape in India. Here's how each contributes:
  • LIC (Life Insurance Corporation): As one of the largest insurance companies in India, LIC invests in a variety of securities, including stocks and bonds, often participating in private placements to diversify its portfolio.
  • GIC (General Insurance Corporation): This major reinsurance company also invests in private placements, seeking stable returns and capital appreciation through strategic investments in different sectors.
  • UTI (Unit Trust of India): As a mutual fund and investment company, UTI often takes part in private placements to access exclusive investment opportunities that are not available in the public market.

Conclusion: Why 'All of These' is Correct
Given the roles of LIC, GIC, and UTI in the investment ecosystem:
  • All three institutions are equipped with the necessary capital and expertise to engage in private placements.
  • They actively seek out such investment opportunities to enhance their portfolios and achieve better returns for their policyholders and investors.

Thus, the correct answer is option 'D': all these institutions can participate in private placements, making them integral to the process of raising capital for companies.
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Under Private Placement Company sell securities to some selected institutions. From the following identify such institution.a)LICb)GICc)UTId)All of theseCorrect answer is option 'D'. Can you explain this answer?
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