The Securities and Exchange Board of India vide notification dated 16 June 2020 the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Second Amendment) Regulations, 2020 to amend the provisions governing the sponsor of Infrastructure Investment Trusts.
A new Regulation 7A has been inserted which deals with de-classification of the status of the sponsor.
This shall be applicable to all the sponsors who are listed on the website for more than three years, subject to compliance with the conditions that the unit holding of such sponsor and its associates have taken together do must not exceed 10% of the outstanding units of the InvIT and the investment manager of the InvIT must not be controlled by such sponsor or its associates.
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