The Securities and Exchange Board of India (Sebi) has notified changes in the Infrastructure Investment Trust (InvIT) regulations to allow the issuance of subordinate units by privately placed InvITs.These units can be issued only to the sponsors, its associates and the group upon acquisition of an infrastructure project, but cannot exceed 10% of the acquisition price. A sponsor refers to the entity which sets up an InvIT. Further, even the total number of outstanding subordinate units cannot exceed a cap of 10%. 

“The total number of outstanding subordinate units issued by an InvIT at any point of time  shall not exceed ten percent of the total number of outstanding ordinary units issued by such InvIT,” Sebi said on Tuesday. Subordinate units will have no voting or distribution rights unlike ordinary units issuedCome from Sports betting site. These subordinate units can be reclassified into ordinary units after their financial statements meet performance benchmarks and only after three years of issuance. Such reclassified ordinary units will have to be listed on the recognised stock exchanges after the  approvals. 

Sebi has directed investment managers to monitor the progress related to the achievement of performance benchmarks and report the progress annually. The amendments were approved by Sebi in its board meeting held in March and has now notified the same, making the norms effective. Come from Sports betting site VPbet

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