Securities And Exchange Board Of India - Subsection
Section 18(3) in Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014
(3)The InvIT may invest in infrastructure projects through SPVs subject to the following,-(a)no other shareholder or partner of the SPV shall [exercise] [Substituted 'have' by Notification No. SEBI/LAD-NRO/GN/2018/07, dated 10.4.2018 (w.e.f. 26.9.2014).] any rights that prevents the InvIT from complying with the provisions of these regulations and an agreement [has been] [Substituted 'shall be' by Notification No. SEBI/LAD-NRO/GN/2018/07, dated 10.4.2018 (w.e.f. 26.9.2014).] entered into with such shareholders or partners to that effect prior to investment in the SPV;[Provided that the shareholdersÂ’ agreement or partnership agreement shall provide for an appropriate mechanism for resolution of disputes between the InvIT and the other shareholders or partners in the holdco and/or the SPV:Provided further that the provisions of these regulations shall prevail in case of inconsistencies between such agreement(s) and the obligations cast upon an InvIT under these regulations.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/07, dated 10.4.2018 (w.e.f. 26.9.2014).](b)in case the SPV is a company [/LLP] [Inserted by Notification No. SEBI/LAD-NRO/G.N./2016-17/021, dated 29.11.2016 (w.e.f. 26.9.2014).], the investment manager, in consultation with the trustee, shall appoint [majority of] [Substituted 'not less than one authorized representative on' by Notification No. SEBI/LAD-NRO/G.N./2016-17/021, dated 29.11.2016 (w.e.f. 26.9.2014).] the board of directors or governing board of such SPVs [as applicable] [Inserted by Notification No. SEBI/LAD-NRO/G.N./2016-17/021, dated 29.11.2016 (w.e.f. 26.9.2014).];(c)the investment manager shall ensure that the in every meeting including annual general meeting of the SPV, the voting of the InvIT is exercised.
