Regulation 14(4)(r) of the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (“InvIT Regulations”) provides that the units of Infrastructure Investment Trusts (“InvITs”) shall be issued only in dematerialized form to all the applicants.
In order to promote dematerialization of securities and improve transparency in the dealings of securities of Hold Cos/ SPVs, the Securities and Exchange Board of India (“SEBI”) has vide its circular dated May 22, 2023 (“InvITs Circular”) decided that InvITs will henceforth hold the securities of Hold Cos and SPVs in dematerialized form only, where the Investment manager of the InvIT will ensure the same.
Further, for existing securities held by InvITs in Hold Cos and SPVs in physical form, the investment manager of the InvIT is required to dematerialize the securities of Hold Cos and SPVs of the InvIT on or before June 30, 2023.
Please find a copy of the InvITs Circular, here.
This update has been contributed by Aastha (Partner) and Swaraj Singh Narula (Senior Associate).
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