Under the revised framework, investment managers will be required to either exit investments in such SPVs through sale, liquidation, winding-up or merger, or acquire a new infrastructure project within the SPV within one year from the later of:
- completion or termination of the concession agreement,
- conclusion of pending litigation or tax assessments, or
- completion of the defect liability period.
SEBI clarified that the time taken to obtain statutory or regulatory approvals for exiting investments through sale, merger or winding-up would be excluded from the one-year timeline.
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The regulator has also mandated enhanced disclosures for such SPVs in the annual reports of InvITs. These disclosures will include details of the project, status of vesting certificates, assets and liabilities, contingent liabilities, outstanding debt and repayment schedules, adequacy of assets to meet liabilities, and timelines for exiting investments or acquiring new projects.
Investment managers will additionally be required to disclose pending claims, litigation, statutory obligations and details related to defect liability periods concerning such SPVs.
SEBI said the circular has come into effect immediately.
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