SEBI Asks InvITs To File Draft Papers 30 Days Before Opening Of Issue
SEBI building exterior. (Photographer: Sajeet Manghat/BloombergQuint)

SEBI Asks InvITs To File Draft Papers 30 Days Before Opening Of Issue

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The Securities and Exchange Board of India on Tuesday asked Infrastructure Investment Trusts to file draft papers with the regulator and exchanges 30 days prior to opening of the issue.

The draft placement memorandum shall be filed through a SEBI registered merchant banker, the markets watchdog said in a circular.

"The circular shall come into effect from Jan. 15, 2020 for all InvITs issuing units on private placement basis and are proposed to be listed," the regulator said.

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.

Placement memorandum is a document through which private placement of units of the InvIT is made.

"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," SEBI said.

The board may issue observations on the draft placement memorandum within a time frame specified by SEBI.

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