Preferential issue pricing for InvITs now tied to VWAP benchmarks and stricter listing and refund liabilities. The circular amends preferential issue and institutional placement rules for listed InvITs: units must be listed within two working days post-allotment or monies refunded within four working days with joint and several liability for repayment and interest; pricing for preferential issues is tied to volume-weighted average price benchmarks for frequently traded units and for limited institutional placements; definitions of relevant date, relevant stock exchange and frequently traded units are specified; and sponsors who transacted in the prescribed period are ineligible for preferential allotment except when units are issued as full consideration for asset acquisition.
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Preferential issue pricing for InvITs now tied to VWAP benchmarks and stricter listing and refund liabilities.
The circular amends preferential issue and institutional placement rules for listed InvITs: units must be listed within two working days post-allotment or monies refunded within four working days with joint and several liability for repayment and interest; pricing for preferential issues is tied to volume-weighted average price benchmarks for frequently traded units and for limited institutional placements; definitions of relevant date, relevant stock exchange and frequently traded units are specified; and sponsors who transacted in the prescribed period are ineligible for preferential allotment except when units are issued as full consideration for asset acquisition.
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