The Financial Express (Delhi Edition)
Sebi proposes new disclosure, cash flow norms for InvITs
Regulator invites comments from all stakeholders by June 28
New Delhi, June 15: Markets regulator Sebi on Wednesday proposed additional disclosures to be made by the Infrastructure Investment Trusts (InvITs) as also a framework for how they can calculate net distributable cash flow.
The proposed measures are aimed at helping the entities interested in setting up InvITs better understand the regulatory regime for these newly-introduced products.
Inviting comments from all stakeholders till June 28, Sebi said in a consultation paper for the proposed measures that InvITs and REITs, a similar product for the real estate sector, are seen as potential gamechangers.
Other proposals include disclosures to be made to the stock exchanges on a quarterly basis, disclosure of financial statementsandauditorreportsasper the prevalent accounting standards, maintaining of proper books of account, records and documents and the like.
As per the existing regulations, the frequency of the disclosures to be made to the stock exchanges by an InvIT is on a half yearly basis. Therefore, Sebi has sought comments as to whether the disclosures may be made on a half-yearly basis or be reduced to a quarterly one.
Further, for disclosures, other than the annual ones, results will be submitted to the stock exchanges within 45 days of end of each quarter/half year as applicable.
Besides, InvITs will have to comply with listing agreement and will also have to make disclosure of related party transactions and unit-holding pattern in a prescribed format.
With regard to disclosure of material and price-sensitive infor mation, a prior intimation of two working days will be given to the stock exchanges about the meeting of the board of directors of the investment manager, Sebi said.
Further, Sebi proposed that InvITs maintain a functional website wherein the contents of the website would be updated up to two days and the website would contain the relevant information such as details of its business and contact information of the designated officials, among others.