Securities And Exchange Board Of India - Subsection
Section 18(3A) in Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014
(3A)[ The InvIT may invest in infrastructure projects through holdcos subject to the following,-(a)the ultimate holding interest of the InvIT in the underlying SPV(s) is not less than twenty six per cent;(b)no other shareholder or partner of the holdco or the SPV(s) shall [exercise] any rights that prevent the InvIT, the HoldCo or the SPV(s) 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 holdco/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).](c)the investment manager, in consultation with the Trustee, shall appoint the majority of the Board of directors or governing board of the holdco and SPV(s);(d)the investment manager shall ensure that in every meeting including annual general meeting of the Holdco and SPV(s), the voting of the InvIT is exercised;]
