The Securities and Exchange Board of India vide Circular dated 24th December 2019 has issued guidelines for filing of draft placement memorandum of units by an InvIT and this Circular shall be effective from 15th January 2020.
SEBI defines private placement as an issue of units by an InvIT to any select person or group of persons and does not include an offer of units made through a public issue.
The followings are the clarification issued to the InvITs which are issuing units on private placement basis that are proposed to be listed:-
- InvITs shall file a draft placement memorandum with the Board and Stock Exchange(s) through a merchant banker registered with the Board not less than 30 days prior to opening of the issue where units are issued by way of private placement and which are proposed to be listed.
- The draft placement memorandum shall contain disclosures as specified in InvIT regulations and a due diligence certificate in the prescribed format also needs to be submitted by the merchant banker.
- The Board may issue observations, on the draft placement memorandum within prescribed time.
- The merchant banker to the issue shall ensure that all comments are suitably incorporated in the draft placement memorandum prior to filing of the placement memorandum in terms of SEBI (Infrastructure Investment Trusts) Regulations, 2014 and shall provide the due diligence certificate as per Form B.
Click here to read the Notification.
