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The Securities and Exchange Board of India (Sebi) on Tuesday amended norms for draft filing fees paid by infrastructure investment trusts (InvITs) for initial offers and rights issue. According to the circular uploaded on Tuesday, InvITs are required to pay non-refundable filing fees of 0.1% in case of initial offer, and 0.05% in case of rights issue of the total issue size, including the green shoe option, at the time of filing of draft placement memorandum/offer letter with respect to private placement.
The regulator further said that the amendments will come into force on the date of their publication in the Official Gazette. Prior to the new norms, InvIT were required to pay non-refundable filing fees of 0.1% of the total issue size, irrespective of the type of issue.
InvITs are investment vehicles similar to mutual funds, wherein sponsors/managers pool money from investors, which is further invested in real estate and infrastructure projects. In April this year, Sebi had reduced listing time for REITs and InvITs to 6 days from 12 days to streamline the process of public issues of these investment vehicles. At present, 15 InvITs are registered with Sebi, and only 7 out of them are listed on the exchanges.
A total of Rs 21,195 crore was collected through InvITs in 2021-22. The funds were raised through initial offer, preferential issue, institutional placement and rights issue. The total fundraise also included money collected by unlisted InvITs, according to PTI.
In August last year, the market regulator had also amended regulations of InvITs to enhance its reach to large set of investors. InvITs allow investors to participate in assets beyond one’s reach, given the size and complexity of managing operations.
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