The Securities and Exchange Board of India (SEBI) on October 30, 2024, issued the notification regarding the Consultation paper on introduction of regulatory framework for Restricted return InvITs.
The following has been stated namely: -
• Suggestions are requested for the following namely: -
o Whether the proposal to introduce regulatory framework for restricted return InvIT is appropriate?
o Whether the proposal that the restricted return can be in nature of either downside protection on returns or upside restriction on returns or a combination of both is appropriate?
o Whether the introduction of this framework for privately placed InvIT is appropriate?
o Whether the minimum asset value of Rs. 50,000 crores is appropriate?
o Whether the minimum investment lot and minimum trading lot and Face value of each unit of Rs. 500 crores is appropriate?
o Whether the proposal with regard to submission of waiver cum undertaking form as proposed in Para 4.5 above is appropriate?
o Whether the process of collection of waiver cum undertaking form as proposed in Para 4.6 above is appropriate?
o Whether the proposal to mandate periodic evaluation on the performance of InvIT assets, as stated in Para 4.10.1 above, is appropriate? Kindly indicate frequency for such periodic evaluation.
o Whether the proposals to mandate credit rating of defined upfront contractual agreement by Credit Rating Agencies, as stated in Paras 4.10.3 and 4.10.4 above, is appropriate?
o Whether the disclosure of prominent risk factor, as proposed in Para 4.10.5 above, is appropriate?
• The comments/suggestions should be submitted latest by November 13, 2024 at https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes in the prescribed format
