TMI BlogInvestment conditions and dividend policyX X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the shareholders agreement or partnership agreement shall provide for an appropriate mechanism for resolution of disputes between the InvIT and the other shareholders or partners in the holdco and/or the SPV: Provided further that the provisions of these regulations shall prevail in case of inconsistencies between such agreement(s) and the obligations cast upon an InvIT under these regulations.] (b) in case the SPV is a company 6 [/LLP], the investment manager, in consultation with the trustee, shall appoint 7 [majority of] the board of directors or governing board of such SPVs 8 [as applicable]; (c) the investment manager shall ensure that the in every meeting including annual general meeting of the SPV, the voting of the InvIT is exercised. 9 [(3A) The InvIT may invest in infrastructure projects through holdcos subject to the following,- (a) the ultimate holding interest of the InvIT in the underlying SPV(s) is not less than twenty six per cent; (b) no other shareholder or partner of the holdco or the SPV(s) shall 10 [exercise] any rights that prevent the InvIT, the HoldCo or the SPV(s) from complying with the provisions of these regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvested in, (i) under-construction infrastructure projects, whether directly or through 21 [holdco and/ or] SPVs: Provided that investment in such assets shall not exceed ten per cent. of the value of the 22 [InvIT assets]; (ii) listed or unlisted debt of companies or body corporate in infrastructure sector: Provided that this shall not include any investment made in debt of the 23 [holdco and/ or SPV(s)]; (iii) equity shares of companies listed on a recognized stock exchange in India which derive not less than eighty per cent. of their operating income from infrastructure sector as per the audited accounts of the previous financial year; (iv) government securities; (v) money market instruments, liquid mutual funds or cash equivalents; (c) if the conditions specified in clauses (a) and (b) are breached on account of market movements of the price of the underlying assets or securities, the investment manager shall inform the same to the trustee and ensure that the conditions as specified in this regulation are satisfied within six months of such breach: Provided that the period may be extended to one year subject to approval from investors in acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SPV or if the equity shares or interest in the 31 [holdco/] SPV are sold by the InvIT, (a) if the InvIT 32 [***] proposes to re-invest the sale proceeds into another infrastructure asset, it shall not be required to distribute any sales proceeds to the InvIT or to the investors; (b) If the InvIT 33 [***] proposes not to invest the sales proceeds into any other infrastructure asset 34 [within a period of one year], it shall be require to distribute the same in accordance with sub-regulation (6). (8) If the distributions are not made within fifteen days of declaration, then the investment manager shall be liable to pay interest to the unit holders at the rate of fifteen per cent. per annum till the distribution is made and such interest shall be not be recovered in the form of fees or any other form payable to the investment manager by the InvIT. (9) An InvIT shall not invest in units of other InvITs. (10) An InvIT shall not undertake lending to any person 35 [other than the holdco/ SPV(s) in which the InvIT has invested in]: Provided that investment in debt securities shall not be considered as lending. (11) An InvIT shall hold an infrastructure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 11 Substituted ibid for the words shall be . 12 Inserted by the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 13 Substituted for In case of InvIT as specified under sub-regulation (2) of regulation 14, the InvIT shall invest only in eligible infrastructure projects or securities of companies or partnership interests of LLPs in infrastructure sector: Provided that un-invested funds may be invested in liquid funds or government securities or money market instruments or cash equivalents. Explanation.- Companies or LLPs in infrastructure sector shall mean those companies or LLPs which derive not less than eighty per cent. of their operating income from infrastructure sector as per the audited accounts of the previous financial year. by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 14 Inserted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 32 Omitted or SPV by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 33 Omitted or SPV by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 34 Inserted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 35 Inserted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 36 Inserted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 37. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/122 dated 14-02-2023 38. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/159 dated 20-10-2023 before it was read as, . 39. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/159 dated 20-10-2023 40. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/159 dated 20-10-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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