RIGHTS AND RESPONSIBILITIES OF SPONSOR(S) :
• The sponsor(s) shall set up the InvIT and appoint the trustees of the InvIT.
• The sponsor(s) shall transfer or undertake to transfer to the InvIT, its entire shareholding or interest in the SPV or ownership of the infrastructure projects, subject to a binding agreement and adequate disclosures in the offer document or placement memorandum, prior to allotment of units of the InvIT.
However, this shall not apply to the extent of any mandatory holding of shares or interest in the SPV by the sponsor(s) as per any Act or regulations or circulars or guidelines of government or any regulatory authority or concession agreement.
• With respect to holding of units in the InvIT, the sponsor(s) together shall hold not less than 25% of the total units of the InvIT after initial offer of units, on a post-issue basis for a period of not less than 3 years from the date of the listing of such units.
However, in case of PPP projects, in case such acquiring or holding is disallowed by government or under any provisions of the concession agreement or any other such agreement,–
– the sponsor may continue to maintain such holding at the SPV level;
– the consolidated value of all such holdings at the SPV level and the value of the units of InvIT held by the sponsor shall not be less than the value of 25% of the total units of the InvIT after initial issue of units on a post-issue basis;
– such units of the InvIT and shares or interest in the SPV shall be held for a period of not less than three years from the date of the listing of units of the InvIT;
– in case such holding of sponsor in the SPV results in the InvIT not having controlling interest and not having more than fifty per cent shareholding or interest in the SPV, the sponsor shall enter into a binding agreement with the InvIT to ensure that decisions taken by the sponsor including voting with respect to the SPV are in compliance with these regulations and not against the interest of the InvITs or the unit holders and shall be subject to further guidelines as may be specified by SEBI.
• Any holding by sponsor in InvIT, exceeding twenty five per cent on a post issue basis, shall be held for a period of not less than one year from the date of listing of such units.