SEBI Updates: Bankers to an Issue, Infrastructure Investment Trusts & Real Estate Investment Trusts

Sr. No.

Amendment

Effect

1

Substitution: Regulation 2(aa) banker to an issue means a scheduled bank or such other banking company as may be specified by the Board from time to time, carrying on any of the activities, including:

(i) acceptance of application and application monies;

(ii) acceptance of allotment or call monies;

(iii) refund of application monies;

(iv) payment of dividend or interest warrants;

Pre-amendment, the definition included only scheduled banks but with the advent of this amendment, even other banking companies as specified by SEBI shall be included.

2

Substitution: Regulation 2(ab) the words and symbols- clause (7) of section 2 of the Companies Act, 1956 (1 of 1956) shall be replaced with the words and symbols- clause (11) of section 2 of the Companies Act, 2013 (18 of 2013).

To bring in line with the Companies Act, 2013.

3

Substitution: Regulation 2(ae)(i) the words and symbols- regulation 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 shall be replaced with the words and symbols- regulations framed under clause (h) of sub-section (2) of section 11 of the Act.

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4

Omission: Regulation 3(1) the words by scheduled bank shall be omitted.

To bring in line with the amendment made in the definition of Banker to an issue.

5

Insertion: Regulation 6(c) After the words scheduled bank, the words or such other banking company as specified by the Board shall be inserted.

To bring in line with the amendment made in the definition of Banker to an issue.

6

Substitution: Regulation 22 The Board shall, after consideration of inspection or investigation report, take such action as it may deem fit and appropriate including action under Chapter V of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.

Pre-amendment, the power to take action on inspection or investigation report vested with the Board as well as Chairman but with the advent of this amendment, the word Chairman is omitted from the regulation.

Sr. No.

Amendment

Effect

1

Insertion, Substitution: Regulation 14(4)(c)

the word 'amount' shall be inserted after the word 'subscription', and the words 'be one lakh rupees' shall be substituted with the words 'fall within the range of ten thousand rupees to fifteen thousand rupees'.

The purpose of amendment is to lower down the minimum subscription amount from any investor in initial and follow-on offer from Rs. 1 lakh to a range of Rs.10,000 - Rs.15,000.

2

Substitution: Regulation 16(9)(b) the words and figures '100 units' shall be substituted with the words 'one unit'.

The purpose of amendment is to lower down the trading lot from 100 units to 1 unit for the purpose of trading in designated SE.

3

Insertion: Regulation 26B

(3) The minimum number of unit holders in an InvIT, other than the sponsor(s), its related parties and its associates, shall be five, together and collectively holding at least twenty-five per cent of the total units of the InvIT, at all times.

Explanation: For the purposes of this sub-regulation, a unit holder along with its associates and related parties, shall be considered as a single unit holder.

Addition of condition for raising of funds and investments.

Sr. No.

Amendment

Effect

1

Insertion, Substitution: Regulation 14(14) the word 'amount' shall be inserted after the word 'subscription', and the words and symbols 'and/or public offer shall be fifty thousand' shall be substituted with the words and symbols 'and follow-on offer shall fall in the range of ten thousand rupees to fifteen thousand rupees'.

The purpose of amendment is to lower down the minimum subscription amount from any investor in initial and follow-on offer from Rs. 50,000 to a range of Rs. 10,000-Rs. 15,000.

2

Substitution: Regulation 16(4) the words and figures '100 units' shall be substituted with the words 'one unit'.

The purpose of amendment is to lower down the trading lot from 100 units to 1 unit for the purpose of trading in designated SE.