On the 20th of October, 2023, the Securities and Exchange Board of India (SEBI) issued a significant notification regarding amendments to the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014. This notification, titled “Securities and Exchange Board of India (Infrastructure Investment Trusts) (Third Amendment) Regulations, 2023,” introduces key changes to the regulatory framework governing Infrastructure Investment Trusts (InvITs).
Key highlights of these amendments include:
1. Amendment to Regulation 18: This amendment focuses on sub-regulation (6) of Regulation 18, introducing several changes to streamline the functioning of Infrastructure Investment Trusts.
- Symbol Change: In sub-clause (e), the symbol “.” after the words “specified by the Board” has been substituted with the symbol “:”. This symbol change is a part of a broader effort to enhance clarity and readability of regulatory documents.
- Proviso Introduction: A new proviso has been introduced in sub-clause (e), specifying that the amount transferred to the Investor Protection and Education Fund will not bear any interest. This change aims to address the treatment of unclaimed or unpaid amounts and enhance investor protection.
- Claiming Unclaimed Amounts: A new sub-clause (f) has been introduced after sub-clause (e), outlining the procedure for claiming the unclaimed or unpaid amount of a person transferred to the Investor Protection and Education Fund. This addition simplifies the process for investors seeking to recover their unclaimed funds.
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SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION
Mumbai, the 20th October, 2023
SECURITIES AND EXCHANGE BOARD OF INDIA (INFRASTRUCTURE INVESTMENT TRUSTS) (THIRD AMENDMENT) REGULATIONS, 2023
No. SEBI/LAD-NRO/GN/2023/159.— In exercise of the powers conferred under section 30 read with sections 11 and 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, namely: –
1. These regulations may be called the Securities and Exchange Board of India (Infrastructure Investment Trusts) (Third Amendment) Regulations, 2023.
2. They shall come into force on the date of their publication in the Official
3. In the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014, in regulation 18, in sub-regulation (6), –
(1) in sub-lause (e), the symbol “.” after the words “specified by the Board” shall be substituted with the symbol “:”;
(2) in sub-clause (e), the following proviso shall be inserted, namely, –
“Provided that the amount transferred to Investor Protection and Education fund shall not bear any interest.”
(3) after sub-clause (e), the following sub-clause shall be inserted, namely, –
“(f) the unclaimed or unpaid amount of a person that has been transferred to the Investor Protection and Education Fund in terms of sub-clause (e), may be claimed in such manner as may be specified by the Board.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./506/2023-24]
Footnotes:
1. The Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 was published in the Gazette of India on September 26, 2014 vide LAD-NRO/GN/2014-15/10/1577.
2. The Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 was subsequently amended by the –
a. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2016, vide No. SEBI/LAD/NRO/GN/2016-17/021, with effect from November 30,
b. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2017, vide No. SEBI/LAD-NRO/GN/2017-18/024, with effect from December 15, 2017.
c. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2018, vide No. SEBI/LAD-NRO/GN/2018/07, with effect from April 10, 2018.
d. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2019, vide No. SEBI/LAD-NRO/GN/2019/10, with effect from April 22, 2019.
e. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2020, vide No. SEBI/LAD-NRO/GN/2020/05, with effect from March 02, 2020.
f. Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, vide SEBI/LAD-NRO/GN/2020/10, with effect from April 17, 2020.
g. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Second Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/15, with effect from June 16, 2020.
h. Securitie sand Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/27, with effect from July 30,
i. Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021 vide SEBI/LAD-NRO/GN/2021/30, with effect from August 31, 2021.
j. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/83, with effect from May 4,
k. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Second Amendment) Regulations, 2022 vide SEBI/LAD-NRO/GN/2022/101 with effect from January 1, 2023.
l. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/122 with effect from February 14, 2023.
m. Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD–NRO/GN/2023/137 with effect from July 4, 2023.
n. Securities and Exchange Board of India (Infrastructure Investment Trusts) (Second Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/145 with effect from August 16, 2023)
