The Securities and Exchange Board of India (SEBI) on September 28, 2022, issued a circular regarding amendments to guidelines for the preferential issue and institutional placement of units by a listed InvIT.
The SEBI has issued guidelines for the preferential issue and institutional placement of units by listed InvITs vide circular no. SEBI/HO/DDHS/DDHS/CIR/P/2019/143 dated November 27, 2019, and has been subsequently revised from time to time.
The modified guidelines for preferential issue and institutional placement of units by listed InvITs are as stated:
• Clause 2.2. of SEBI circular dated November 27, 2019 (as amended), is modified as under:
“2.2 Units of the same class, which are proposed to be allotted have been listed on a stock exchange for a period of at least six months prior to the date of issuance of notice to its unit holders for convening the meeting to pass the resolution in terms of clause 2.1 above:”
• Clause 4.2. of Annexure II of SEBI circular dated November 27, 2019 (as amended), is modified as under:
“4.2 No allotment shall be made, either directly or indirectly, to any institutional investor who is a sponsor(s) or investment manager, or is a person related to, or related party or associate of, the sponsor(s) or the investment manager
Provided that allotment of units can be made to the sponsor for un-subscribed portion in the institutional placement subject to the following conditions
o at least ninety percent of the issue size has been subscribed
o objects of the issue are acquisition of assets from that sponsor
o units allotted to the sponsor shall be locked in as per Clause 3 of Annexure I.
o unitholders approval shall be taken for unsubscribed portion being allotted to sponsor”
[Circular No. SEBI/HO/DDHS/DDHS_Div3/P/CIR/2022/129]
