Regulation 20 - Borrowings and deferred payments - Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014

Borrowings and deferred payments 20. 1 [(1) An InvIT, whose units are listed on a recognized stock exchange, may issue debt securities in the manner specified by the Board: Provided that such debt securities shall be listed on recognized stock exchange(s).] 2 [(2)] The aggregate consolidated borrowings and deferred payments of the InvIT 3 [, holdco and the SPV(s),] net of cash and cash equivalents shall 7 [ not ] exceed 8 [ seventy ] per cent. of the value of the InvIT assets. 10 [ Explanation 1. Investment by InvITs in overnight mutual funds, characterized by their investments in overnight securities, having maturity of one day, shall be considered as cash and cash equivalent. Explanation 2. The amount of cash and cash equivalent shall be excluded from the value of the assets of the InvIT. ] 4 [(3)] If the aggregate consolidated borrowings and deferred payments of the InvIT 5 [, holdco and the SPV(s),] net of cash and cash equivalents exceed twenty five per cent. of the value of the InvIT assets, for any further borrowing, 9 [ a) upto forty nine percent, an InvIT shall - (i) obtain credit rating from a credit rating agency registered with the Board; and (ii) seek approval of unit holders in the manner as specified in Regulation 22. b) above forty nine percent, an InvIT shall - (i) obtain a credit rating of AAA or equivalent for its consolidated borrowing and the proposed borrowing, from a credit rating agency registered with the Board; (ii) utilize the funds only for acquisition or development of infrastructure projects; (iii) have a track record of at least six distributions, in terms of sub-regulation (6) of regulation 18, on a continuous basis, post listing, in the years preceding the financial year in which the enhanced borrowings are proposed to be made; (iv) obtain the approval of unit holders in the manner specified in sub-regulation (5A) of regulation 22. ] 6 [(4)] If the conditions specified in sub-regulations (1) and (2) 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 are satisfied within six months of such breach. **************** NOTES: - 1 Inserted by the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 2 Re-numbered ibid. 3 Inserted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 4 Re-numbered by the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 5 Inserted by Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, w.e.f 30.11.2016 6 Re-numbered by the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 7. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/10 dated 22-04-2019 before it was read as never 8. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/10 dated 22-04-2019 before it was read as forty nine 9. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/10 dated 22-04-2019 before it was read as, (a) credit rating shall be obtained from a credit rating agency registered with the Board; and (b) approval of unit holders shall be obtained in the manner as specified in regulation 22. 10. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/122 dated 14-02-2023