Guidelines by SEBI for Preferential Allotment of units by InvIT

By July 18, 2018 December 20th, 2019 No Comments

The Securities Exchange Board of
India (SEBI) issued detailed guidelines for preferential issue of units to
institutional investors under the SEBI (Infrastructure Investment Trusts)
Regulations, 2014. The guidelines provide for conditions of preferential issue,
placement documents, pricing, restriction on allotment and transferability of

preferential issue may be offered to a minimum of 2 and a maximum of 1000
investors in a financial year. The issue may be completed within 12 months from
the date of passing of the resolution by the board of directors of the InvIT
and a gap of 6 months shall be maintained until the next issue. The
preferential issue may be carried out by intermediaries registered under SEBI. Allotted
units shall not be sold by the allottee for period of 1 year except on a
recognised stock exchange.

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