Sebi puts out listing norms for infra investment trusts

Markets regulator Securities and Exchange Board of India (Sebi) has come out with guidelines for public issue of units of (Infrastructure Investment Trusts (InvITs).

According to the guidelines, not more than 75% of the total public has to be allocated to institutional investors while not less than 25%  shall be allocated to other investors. The investment manager on behalf of the InvIT will have the option to allocate upto 60% of the portion available for allocation to institutional investors to anchor investors.

However, the anchor investor will have to make an application of at least Rs 10 crore in the public issue. Besides, allocation to anchor investors shall be on a discretionary basis and subject to the minimum of 2 investors for allocation upto Rs 250 crore and minimum of 5 investors for allocation of more than Rs 250 crore, SEBI said.

According to the guidelines, neither the merchant bankers nor any person related to the merchant bankers in the concerned public issue can apply under anchor investor category except mutual funds, insurance companies and pension funds.

The investment manager on behalf of the InvIT will have to deposit, before the opening of subscription, and keep deposited with the stock exchanges, an amount calculated at the rate of 0.5% of the amount of units offered for subscription to the public or Rs 5 crore, whichever is lower.

As far as the tenure of the issue is concerned, the public issue shall be kept open for at least 3 working days but not more than 30 days.
DH News Service