SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2019

Apr 24, 2019 | by Avantis RegTech Legal Research Team

The Securities and Exchange Board of India (SEBI) on April 22, 2019, has published SEBI (Infrastructure Investment Trusts) (Amendment) Regulations, 2019, to further amend the SEBI (Infrastructure Investment Trusts) Regulations, 2014. It will come into force on the date of their publication in the Official Gazette.

The followings are the amendments made in the SEBI (Infrastructure Investment Trusts) Regulations, 2014:

•In Regulation 14(4)(c) which specifies ‘Issue of units and allotments’, the word “ten” shall be substituted with the word “one”.

•In Regulation 16(9)(b) which specifies ‘Listing and trading of units’, the words “be five lakh rupees” shall be substituted with the words “consist of 100 units”.

•In Regulation 17(1)(e) which specifies ‘Delisting of units and winding up of InvITs’, the words “sponsor(s)” shall be omitted and the words “and investment manager” shall be inserted after the word “trustee’ and before the word “requests”.

•A new sub-clause has been inserted that is Regulation 17(1)(ea) has been inserted, which says that the trustee and the Investment Manager of a privately placed and listed InvIT chooses to convert InvIT to a privately placed unlisted InvIT and such request has been approved by unit holders, provided that exit shall be provided to dissenting unitholders.

•In Regulation 17(6), non-obstante clause has been inserted, namely:

“Notwithstanding the above, in case the delisting is done in terms of clause (ea) of sub-Regulation (1),the InvIT may retain its certificate of registration and continue to undertake the activity of a privately placed and unlisted InvIT as specified in Chapter VIA.”

•In Regulation 20(2) which specifies ‘Borrowings and deferred payments’, the words “forty nine” shall be substituted with the word “seventy” and in Regulation 20(3), sub-clauses (a) and (b) shall be substituted.

•In Regulation 21(5) which specifies ‘Valuation of assets’, the proviso has been inserted.

•In Regulation 22(4) which specifies ‘Rights and meetings of unit holders’, sub-clause (c) has been substituted and in Regulation 22(5), the word ‘trustee and’ shall be inserted before the words ‘investment manager’.

•A new Regulation 22(5A) and Regulation 22(5B) have been inserted.

•In Regulation 23(4) which specifies ‘Disclosures’, certain amendments have been made and a new proviso has been inserted, namely:

“Provided that for any InvIT, whose units are listed and whose consolidated borrowings and deferred payments, in terms of regulation 20, is above forty nine per cent., such InvIT shall also submit a quarterly report to the designated stock exchange within thirty days from the end of every quarter ending June and December.”

Regulation 23(5) has been substituted, namely:

“Annual/ half yearly /quarterly reports shall contain disclosures as specified under Part-A, Part-B and Part-C, respectively, of Schedule IV.”

•A new Chapter VIA relating to ‘Framework for private placement of units of InvITs which are not listed’ has also been inserted.

[Notification No. SEBI/LAD-NRO/GN/2019/10]

Click here to download the Notification.


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