Regulation 26B - Raising of funds and investments - Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014

1 [26B. Raising of funds and investments 3 [ **** ] (2) An InvIT may undertake borrowing to the extent permitted under the trust deed, after seeking approval from such number of investors as specified in the trust deed. ] 2 [ (3) The minimum number of unit holders in an InvIT, other than the sponsor(s), its related parties and its associates, shall be five, together and collectively holding at least twenty-five per cent of the total units of the InvIT, at all times. Explanation . - For the purposes of this sub-regulation, a unit holder along with its associates and related parties, shall be considered as a single unit holder. ] ******** Notes 1. Inserted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/10 dated 22-04-2019 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/27 dated 30-07-2021 3. Omitted vide Notification No. SEBI/LAD-NRO/GN/2022/101 dated 09-11-2022 w.e.f. 01-01-2023 before it was read as, (1) An InvIT raising funds by way of a private placement in terms of the provisions of this Chapter (a) shall do it through a placement memorandum; (b) shall raise funds only from institutional investors and body corporates, whether Indian or foreign: Provided that in case of foreign investors, such investment shall be subject to guidelines as may be specified by the Reserve Bank of India and the Government from time to time; (c) shall not accept from an investor, an investment of value less than rupees one crore; (d) shall not raise funds from more than twenty investors; (e) shall file a placement memorandum with the Board alongwith the fee as specified in Schedule II, atleast 5 days prior to opening of the issue; (f) shall file the final placement memorandum with the Board within a period of ten working days from the date of allotment of the units to the investors; (g) invest not less than eighty per cent of the value of the InvIT assets in eligible infrastructure projects either directly or through holdcos or through SPVs: Provided that un-invested funds may be invested in instruments as provided under sub-clause (ii), (iii), (iv) and (v) of clause (b) of sub-regulation 5 of Regulation 18.