Capital Markets

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI) has issued a circular dated 17 January 2020 introducing “Guidelines for rights issue of units by a listed Infrastructure Investment Trusts (InvIT)” (Guidelines). Under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (InvIT Regulations), a listed InvIT may issue units through various modes including a follow-on offer, preferential allotment, qualified institutional placement and rights issue.

Under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations 2014 and relevant guidelines and circulars issued thereunder (REIT Regulations), a real estate investment trust (REIT) is required to list its units on a recognised stock exchange only through an initial public offer.

The present system of stamp duty collection governing securities market transactions had many challenges such as multiple rates for the same instrument, differing rates in states and lack of clarity, often leading to higher transaction costs and roadblocks in capital formation. It also encouraged corporates to forum shop for jurisdictions which provided favourable stamp duties.

Under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 and relevant guidelines and circulars issued thereunder (REIT Regulations), a real estate investment trust (REIT) is required to list its units on a recognised stock exchange only through an initial public offer.

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), had on 27 November 2019 introduced the “Guidelines for the Preferential Issue of Units and Institutional Placement of Units by a listed Infrastructure Investment Trust” (2019 Guidelines), applicable to listed infrastructure investment trusts registered with SEBI (InvITs).

The Kotak Committee Report on Corporate Governance had recommended certain changes to the regulatory regime for group audit.

On 16 November 2018, the Securities and Exchange Board of India (SEBI), by way of the SEBI (Listing Obligations and Disclosure Requirements) (Sixth Amendment) Regulations, 2018 (Amended Regulations) has amended and replaced Regulation 31A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 relating to the reclassification of existing promoters of listed companies as public shareholders. The new framework has been introduced based on the recommendations of the Kotak Committee on Corporate Governance.

The Securities and Exchange Board of India (SEBI), through a notification dated 30 November 2018, has introduced the SEBI (Settlement Proceedings) Regulations, 2018 (Settlement Regulations). The Settlement Regulations, effective from 1 January 2019, will replace the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014 (2014 Regulations). The Settlement Regulations have set out the terms and procedure for settlement of any proceedings initiated and pending before the SEBI or any other forum, for the violation of specified securities laws.

The Securities and Exchange Board of India (SEBI) has issued regulations dated 14 November 2018 (Ref: No. SEBI/LAD-NRO/GN/2018/46) (Amendment Regulations) further amending the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Delisting Regulations).