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TMI BlogGuidelines for Preferential Issue of Units by Infrastructure Investment Trusts (InvITs)X X X X Extracts X X X X X X X X Extracts X X X X ..... ) provides for any subsequent issue of units after an initial offer in a manner specified by Board from time to time. Accordingly, the detailed guidelines for preferential issue by an InvIT are provided herein. 2. Conditions for preferential issue 2.1. A listed InvIT may make preferential issue of units to an institutional investor as defined in the InvIT regulations, if it satisfies the following conditions: 2.1.1. A resolution of the unitholders of the InvIT approving the preferential issue in accordance with Regulation 22(5) of the InvIT Regulations has been passed. 2.1.2. The InvIT is in compliance with the conditions for continuous listing and disclosure obligations under the InvIT Regulations and circulars issued thereunde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the committee of directors duly authorised by the board of directors of the investment manager of the InvIT decides to open the proposed issue. 3. Placement Document 3.1. The InvIT may appoint one or more SEBI registered intermediaries to carry out the obligations relating to the issue. 3.2. The preferential issue of units by an InvIT shall be done on the basis of a placement document, which shall contain disclosures as specified in Annexure I. 3.3. The placement document shall be serially numbered and copies shall be circulated only to select investors subject to compliance with clause 2.7 above. 3.4. The InvIT shall, while seeking in-principle approval from the recognised stock exchange, furnish a copy of the placement do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... except to the sponsor only to the extent that is required to ensure compliance with regulation 12 (3) of the InvIT Regulations. Explanation: To determine the related parties , the term related party as defined under the InvIT Regulations shall be applicable. However, Mutual Funds, Insurance Companies and Pension Funds shall not be treated as related parties for the purpose of clause 5.1 above. 5.2. The applicants in preferential issue shall not withdraw their bids after the closure of the issue. 6. Transferability of Units 6.1. The units allotted under preferential issue shall not be sold by the allottee for a period of one year from the date of allotment, except on a recognised stock exchange. 7. This circular is being issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such period commencing from the date the concerned stock exchange recognizes the change in the capital structure e) the market price immediately after the date on which the resolution of the board of directors of the investment manager or manager of the InvIT approving the issue was approved. f) the volume of units traded in each month during the six months preceding the date on which the placement document is filed with the stock exchanges and the Board; g) along with high, low and average prices of units of the InvIT, details relating to volume of business transacted should also be stated for respective periods. 3) The placement document shall contain the disclosures as specified under schedule III of the InvIT Regulations in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ite of the InvIT, stock exchanges, shall be provided. 6) Valuation a) Summary of valuation of the assets proposed to be financed through proceeds of the issue, if any, as per the latest valuation report not more than six months old from the relevant date. b) Valuation methodology c) Frequency of valuation and declaration of NAV. d) Any disclosures made regarding valuation since the initial offer shall also be incorporated by reference to such disclosures. e) Link(s) to document(s) at (d) above wherever available, including on the website of the InvIT, stock exchanges, shall be provided. f) The valuation report of the asset to be financed through proceeds of the issue, if any, shall be provided along with the placement d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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