Section 20 in Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014
20. Borrowings and deferred payments.
- [(1) An InvIT, whose units are listed on a recognized stock exchange, may issue debt securities in the manner specified by the Board:Provided that such debt securities shall be listed on recognized stock exchange(s).] [Inserted by Notification No. SEBI/LAD-NRO/G.N./2017-18/024, dated 15.12.2017 (w.e.f. 26.9.2014).](2)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 shall [not] [Substituted 'never' by Notification No. SEBI/LAD-NRO/GN/2019/10, dated 22.4.2019.] exceed [seventy] [Substituted 'forty nine' by Notification No. SEBI/LAD-NRO/GN/2019/10, dated 22.4.2019.] per cent. of the value of the InvIT assets.(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.](4)If the conditions specified in sub-regulations (1) and (2) are breached on account of market movements of the price of the underlying assets or securities, the investment manager shall inform the same to the trustee and ensure that the conditions are satisfied within six months of such breach.
