CIRCULAR
SEBI/HO/DDHS/DDHS-PoD-2/P/CIR/2024/114 August 22, 2024
To,
All Infrastructure Investment Trusts (InvITs)
All Parties to InvITs
All Recognised Stock Exchanges
Madam/Sir,
Sub: Amendment to Master Circular for Infrastructure Investment Trusts (InvITs)
dated May 15, 2024 - Review of statement of investor complaints and timeline for
disclosure of statement of deviation(s)
1. SEBI vide Circular No. CIR/IMD/DF/127/2016 dated November 29, 2016 specified
provisions for continuous disclosures and compliances by InvITs. The said circular was
consolidated as Chapter 4 of the Master Circular for Infrastructure Investment Trusts
(InvITs) dated May 15, 2024 (“Master Circular”).
2. To improve ease of doing business related to activities of InvITs and REITs, a working
group was constituted by SEBI to examine and give recommendations on ease of doing
business measures (“Working Group”). The Working group, inter-alia, gave
recommendations on the provisions related to the review of statement of investor
complaints and timeline for disclosure of statement of deviation(s).
Review of statement of investor complaints
3. With regard to the provisions related to the review of statement of investor complaints,
paragraph 4.16.3 and 4.16.4 of the Master Circular reads as under:
"4.16.3. All complaints including SCORES complaints received by the InvIT shall be
disclosed in the format mentioned in Annexure – 7 on the website of the InvIT and
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also filed with the recognized stock exchange(s), where its units are listed within 21
days from the end of financial year or end of quarter, as the case may be.
4.16.4. The Trustee and the Board of Directors/Governing Body of the Investment
Manager, shall review the aforementioned statement, before submission of the same
to the Stock Exchange(s), and shall ensure that all investor complaints are redressed
by the Investment Manager in timely manner."
4. Based on the recommendations of the Working Group and the Hybrid Securities
Advisory Committee (“HySAC”), it is noted that the requirement of prior review of
statement of investor complaints by the Board of Directors of the Investment Manager
(i.e. before submission to the stock exchanges) is not in line with SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”).
As per the LODR Regulations, a prior review by the Board of Directors of the listed
entity is not required and such statement is instead required to be placed before the
Board of Directors on a quarterly basis.
5. Accordingly, in order to promote ease of doing business, it is proposed to amend
paragraph 4.16.4. of the Master Circular as under:
“The Trustee and the Board of Directors/Governing Body of the Investment Manager
shall ensure that all investor complaints are redressed by the Investment Manager in
timely manner. Further, the statement as specified in Para 4.16.3. above shall be
placed, on a quarterly basis, before the Board of Directors/Governing Body of the
Investment Manager and the Trustee for review.”
Timeline for disclosure of statement of deviation(s)
6. With regard to the provisions related to the timeline for disclosure of statement of
deviation(s) in the use of proceeds from the stated objects, paragraph 4.17.2 of the
Master Circular reads as under:
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“The statement(s) specified above, shall be continued to be given till such time the
issue proceeds have been fully utilised or the purpose for which these proceeds were
raised has been achieved.
Such statement(s) shall also be placed before the Trustee and the Board of
Directors/Governing Body of the Investment Manager for review. Pursuant to such
review, the statement shall be submitted to the stock exchange(s). Such submission
to the Stock Exchange(s) shall be made within twenty-one days from the end of each
quarter”
7. Based on the recommendations of the Working Group and the HySAC, it is noted that
as per the LODR Regulations the statement of deviation or variation in the use of
proceeds from the stated objects is required to be submitted to the stock exchange(s)
on a quarterly basis along with the submission of financial results and accordingly
alignment with LODR Regulations may be considered.
8. Accordingly, in order to promote ease of doing business, it is proposed to amend
paragraph 4.17.2. of the Master Circular as under:
“The statement(s) specified above, shall be continued to be given till such time the
issue proceeds have been fully utilised or the purpose for which these proceeds were
raised has been achieved.
Such statement(s) shall also be placed before the Trustee and the Board of
Directors/Governing Body of the Investment Manager for review. Pursuant to such
review, the statement shall be submitted to the stock exchange(s). Such submission
to the Stock Exchange(s) shall be made along with the submission of financial results.
9. This circular shall be applicable with immediate effect.
10. This circular is being issued in exercise of powers conferred under Section 11(1) of
the Securities and Exchange Board of India Act, 1992 and Regulation 33 of the InvIT
Regulations. This circular is issued with the approval of the competent authority.
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11. The recognized Stock Exchanges are advised to disseminate the contents of this
Circular on their website.
12. This Circular is available on the website of the Securities and Exchange Board of
India at www.sebi.gov.in under the category “Legal” and under the drop down
“Circulars”.
Yours faithfully
Ritesh Nandwani
Deputy General Manager
Department of Debt and Hybrid Securities
Tel No.022-26449696
Email id - riteshn@sebi.gov.in
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