To relax investment manager eligibility norms for InvITs; fast-track issuance

Mumbai: Capital markets regulator Sebi on Monday decided to amend its investment manager eligibility norms for Infrastructure Investment Trusts and also permit fast-track issuance of units to existing investors in REITs and InvITs.

The changes in the eligibility norms, approved by Sebi's board at a meeting here, will help a mega offering worth an estimated Rs 20,000 crore by the National Highways Authority of India (NHAI), which is in the process of setting up an Infrastructure Investment Trust (InvIT) to monetise its completed public-funded national highways.

The board approved a proposal to revise eligibility conditions for investment managers in InvITs and for streamlining the process of rights issue of REITs and InvITs, the regulator said after the meeting.

At present, InvIT regulations require the investment manager to have at least 5 years of experience in fund management or advisory services or development in the infrastructure sector. Besides, the investment manager needs to have at least two employees, each with five years of experience in the infrastructure sector.

As an alternative, Sebi will now allow a combined relevant experience of at leat 30 years of directors, partners and employees of the investment manager, even if it is a newly created entity.

The Securities and Exchange Board of India (Sebi) has been receiving representations from the industry and the market participants for considering alternative measures for relevant experience of the investment manager and considering the experience of employees or directors for meeting the experience criteria.