Securities And Exchange Board Of India - Subsection
Section 20(3) in Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014
(3)If the aggregate consolidated borrowings and deferred payments of the InvIT [holdco and the SPV(s)] [Inserted by Notification No. SEBI/LAD-NRO/G.N./2016-17/021, dated 29.11.2016 (w.e.f. 26.9.2014).] net of cash and cash equivalents exceed twenty five per cent of the value of the InvIT assets, for any further borrowing, -(a)[ upto forty nine percent, an InvIT shall - [Substituted by Notification No. SEBI/LAD-NRO/GN/2019/10, dated 22.4.2019.](i)obtain credit rating from a credit rating agency registered with the Board; and(ii)seek approval of unitholders in the manner as specified in Regulation 22.(b)above forty nine percent, an InvIT shall -(i)obtain a credit rating of "AAA" or equivalent for its consolidated borrowing and the proposed borrowing, from a credit rating agency registered with the Board;(ii)utilize the funds only for acquisition or development of infrastructure projects;(iii)have a track record of atleast six distributions, in terms of sub-regulation (6) of regulation 18, on a continuous basis, post listing, in the years preceding the financial year in which the enhanced borrowings are proposed to be made;(iv)obtain the approval of unitholders in the manner specified in sub-regulation (5A) of regulation 22.]
