Amendments to manner and mechanism of providing exit option to dissenting unit holders pursuant to Regulation 22(5C) and Regulation 22(7) of SEBI (Infrastructure Investment Trusts) Regulations, 2014 (“SEBI (InvIT) Regulations”)
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Exit option price enhancement and prescribed timeline apply where an open offer triggers an acquisition affecting dissenting unit holders. Amendments specify that where an acquisition or sponsor change under Regulation 22(5C) or 22(7) is triggered by an open offer, the relevant date is the public announcement date and a detailed timeline applies: first notice with the public announcement, immediate exchange intimation by the investment manager, a second notice seeking unit holder approval with confirmation to provide an exit option, convening and concluding voting within prescribed cut-offs, issuance of a Letter of Offer and creation of an escrow prior to tendering, a defined tendering window, payment to accepted dissenting unit holders shortly after tender closure, and reporting obligations. The exit option price is enhanced by an annualised ten percent for the period between first and second notices.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exit option price enhancement and prescribed timeline apply where an open offer triggers an acquisition affecting dissenting unit holders.
Amendments specify that where an acquisition or sponsor change under Regulation 22(5C) or 22(7) is triggered by an open offer, the relevant date is the public announcement date and a detailed timeline applies: first notice with the public announcement, immediate exchange intimation by the investment manager, a second notice seeking unit holder approval with confirmation to provide an exit option, convening and concluding voting within prescribed cut-offs, issuance of a Letter of Offer and creation of an escrow prior to tendering, a defined tendering window, payment to accepted dissenting unit holders shortly after tender closure, and reporting obligations. The exit option price is enhanced by an annualised ten percent for the period between first and second notices.
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