Which of the following statement (s) is/are correct about the Private Placement? 1. Private placement means the direct sale by a company of its securities to a limited number of sophisticated investors. 2. Entrepreneurs, herein, raise funds by selling the issues mainly to the institutional investors. 3. Army Group Insurance and RBI are examples of Institutional Investors. 4. Entrepreneurs both from public limited and private limited sector, bank heavily upon raising funds through the issue of varied financial instruments under this segment as at times they do not wish to disclose information to the open market.

1 and 2 only 1,2 and 3 only. 1,2 and 4 only 1,2,3 and 4

1,2 and 4 only

RBI is not an institutional investor. Private placement means the direct sale by a company of its securities to a limited number of sophisticated investors. Entrepreneurs, herein, raise funds by selling the issues mainly to the institutional investors like: i) Unit Trust of India ii) Life Insurance Corporation of India iii) General Insurance Corporation of India iv) Army Group Insurance v) State Level Financial Corporations, etc. Entrepreneurs both from public limited and private limited sector, bank heavily upon raising funds through the issue of varied financial instruments under this segment as at times they do not wish to disclose information to the open market.