Explain the circumstances under which an Investment Manager of an Infrastructure Investment Trust (InVIT) can apply to SEBI and the designated Stock Exchange for delisting of its units.
CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · December 2019
Explain the circumstances under which an Investment Manager of an Infrastructure Investment Trust (InVIT) can apply to SEBI and the designated Stock Exchange for delisting of its units.
Answer & Explanation:
The investment manager shall apply for delisting of units of the InvIT to SEBI and the designated stock exchanges if: the public holding falls below the specified limit under the InvIT Regulations. the number of unit holders of the InvIT falls below the limit as prescribed in the InvIT Regulations. if there are no projects or assets remaining under the InvIT for a period exceeding six months and InvIT does not propose to invest in any project in future. The period may be extended by further 6 months, with the approval of unit holders. SEBI or the designated stock exchanges require such delisting for violation of the listing agreement or these regulations or the Act. the sponsor(s) or trustee requests such delisting and such request has been approved by unit holders in accordance with these regulations. unit holders apply for such delisting in accordance with these regulations. SEBI or the designated stock exchanges require such delisting in the interest of the unit holders.
Topics: Investment Trusts
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