• If the InvIT fails to list the units within the specified time, money has to be refunded within four working days from the date of the allotment
• Preferential units shall not be issued to anyone who has sold or transferred any of the issuer’s units in the 90 trading days preceding the relevant date.
• If any member of the sponsor(s) sold or transferred their issuer units within the 90 days preceding the relevant date, all sponsors will be ineligible for preferential unit allotment

SEBI has come out with a circular for amending preferential allotment rules for listed InvIT.  

Under the new guidelines, after allotment of the units,  InvIT is required to file application for listing of the units to the stock exchange. Under the terms of the listing period, units shall be listed within two working days from the date of allotment:

If the InvIT fails to list the units within the specified time, money  has to be refunded within four working days from the date of the allotment

If money is not repaid within the specified timeframes, i.e. by the end of the fourth working day, the InvIT, investment manager of the InvIT, and officers in default will be obligated to repay the money plus interest at 15% per annum.

Where the InvIT’s units are frequently traded, the price of units to be allotted under the preferential issue will be the higher of the 90-day volume weighted average price or the 10-day volume weighted average price of the related units quoted on a recognised stock exchange preceding the relevant date.

If preferential units are issued to a maximum of five institutional investors, the issuance price will not be less than the volume weighted average price over the previous ten trading days.

Preferential units shall not be issued to anyone who has sold or transferred any of the issuer’s units in the 90 trading days preceding the relevant date.

Furthermore, if any member of the sponsor(s) sold or transferred their issuer units within the 90 days preceding the relevant date, all sponsors will be ineligible for preferential unit allotment.

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