The Securities and Exchange Board of India by a Circular dated 17th July, 2020 has detailed guidelines in respect of conditions, manner and mechanism of exit option to be provided to dissenting unit holders pursuant to SEBI Infrastructure Investment Trusts Regulations, 2014 (“SEBI (InvIT) Regulations”).
The detailed guidelines have been provided in Annexure-I of the present Circular and in addition to covering the pertinent definitions and the manner and mechanism of the exit option they inter- alia cover the summary of activities pertaining to exit option/ offer along with the prescribed timelines related thereto, composition of exit price and maintenance of minimum public holding.
According to this Circular, an acquirer providing dissenting option to unit holders is required to appoint one or more merchant bankers who are registered under SEBI as Lead Manager(s) to ensure compliance with the SEBI (InvIT) Regulations and the present Circular. Upon completion of exit option process, a due diligence certificate in Form D shall be filed by the lead manager(s) with the Board within two working days of payment of consideration by the acquirer.
Click here to read the circular.
