On 28-09-2022, the Securities and Exchange Board of India (‘SEBI’) has issued circulars modifying the guidelines for preferential issue and institutional placement of units by listed InvITs/ REITs which were issued vide Circular dated 27-11-2019.
Key Points:
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Bar for minimum listing period of 12 months required in case of issuance of units through “institutional placement” is removed.
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The unsubscribed portion of the units can be allotted to the sponsors fulfilling the following conditions:
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90% of the issue size has been subscribed;
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The issue should be made for acquisition of assets from that sponsor;
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Units allotted should be locked in for a period of 3 years from the date of trading approval granted for the units. (As per Clause 3 Annexure I of Circulars dated 27-11-2019);
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Approval of unitholders has been taken before allotting the un-subscribed portion of the unit.
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