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:
1. Unit Trust of India
2. Life Insurance Corporation of India
3. General Insurance Corporation of India
4. Army Group Insurance
5. 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.