Regulation 17D - Entitlement date, entitlement event and performance benchmark - Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014

1 [Entitlement date, entitlement event and performance benchmark. 17D. (1) The entitlement date, the entitlement event and the performance benchmark for reclassification of subordinate units to ordinary units shall be clearly defined and specified in the Term Sheet. (2) The performance benchmark for reclassification of subordinate units shall be quantifiable, objective and based on the audited financial statements. (3) The minimum time period between the issuance of subordinate units and entitlement date for reclassification of the subordinate units to ordinary units shall be three year. (4) The entitlement date may be extended in the manner specified in the Term Sheet, subject to the following conditions: (a) the entitlement date shall not be extended for more than one year at a time and shall not be extended more than two times in total; (b) the extension of the entitlement date may be done only for cases where a possibility of such extension is clearly contemplated, duly approved and disclosed in the Term Sheet prior to the issuance of subordinate units; (c) the extension of entitlement date shall be allowed only in case of any unforeseen circumstances as mentioned in the Term Sheet such as impossibility on account of a force majeure event or illegality on account of change in law or an order of any court or authority; (d) the explanatory statement to the notice of unitholders meeting convened for seeking approval for the extension in entitlement date shall disclose the reasons for proposing such extension and the potential impact on account of such extension on the ordinary unitholders, including any potential dilution of their beneficial interest in the InvIT; and (e) the extension of the entitlement date shall require the approval of the unitholders as provided for in sub-regulation (7) of regulation 17B; ] **************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/182 dated 27-05-2024