Afternoon D & C Dedicated To Mumbai
Home > Business & Investment > Govt exempts InvITs from acceptance of deposit norms

Govt exempts InvITs from acceptance of deposit norms

Monday, May 15, 2017

Infrastructure Investment Trusts have been exempted from the ambit of acceptance of deposit rules under the companies law, a move that is expected to ease the compliance requirements for the investment vehicle. Regulated by markets watchdog Sebi, InvITs are expected to provide a fillip for fund raising efforts in the country's infrastructure space.

Recently, IRB Infrastructure Developers hit the markets with the first ever InvIT by any company, and few more entities are preparing to tap this route. Now, the Corporate Affairs Ministry has exempted InvITs from the purview of the Companies (Acceptance of Deposits) Rules, 2014. These rules have been framed under the Companies Act, 2013 -- whose most provisions came into effect from April 1, 2014.

In this regard, the ministry has amended the rules last week. However, Real Estate Investment Trusts (REITs) have not been given any such exemption so far. Both InvITs and REITs are being seen as an alternate fund raising route for infrastructure and real estate developers amid decline in financing by banks for these projects.

A senior official said discussions are going on and a decision on whether to exempt REITs from acceptance of deposit rules is yet to be taken. The Securities and Exchange Board of India (Sebi) had InvIT and REIT regulations in 2014, allowing setting up of and listing of such trusts, which are very popular in some advanced markets.

COMMENTS
No Comments Posted
POST YOUR COMMENTS
Name:  
 
Email:    
Comments:
 
 
City news
The Shree Siddhivinayak Mandir Trust Bhrashtachar
PNB Fraud : Fraudulent LoU’s were being issued ...
A 43-year-old driver of a luxury car was ...
We got married recently. I am 32 and my wife is 3
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Astrology
Select Sun sign:
 
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)You will see gradual support coming, which should help to spur you on. The stand that you have taken at work or in your career is about to be vindicated. You have worked hard so it is crucial to maintain the same momentum to see your plans through. Love life is sparkling with excitement. Hectic social activity and the arrival of a loved one will be a pleasant surprise.
- Advertising -
While you are preparing yourself for the most cri
While VR was a thing of past and AR is making a b
‘India is doing very nicely’ is a theme of this y
Read More