TaxTMI 
TaxTMI 
Roles and responsibilities for parties to an investment trust
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....on a quarterly basis. (e) The trustee shall make distributions and ensure that investment manager makes timely declaration of distributions to the unit holders. (f) The trustee shall ensure that subscription amount is kept in a separate bank account with IFSC banking unit in name of the Investment Trust and is only utilized for adjustment against allotment of units or refund of money to the applicants till the time such units are listed. (g) The trustee shall ensure that the remuneration of the valuer is not linked to or based on the value of the asset being valued. (h) The trustee shall ensure that the investment manager convenes meetings of the unit holders and oversee the voting by unitholders and declare outcome of the voting. (i) In case of any change in investment manager due to removal or otherwise,- (i) prior to such change, the trustee shall obtain approval from unit holders and approval from the Authority: Provided that the approval from the Authority shall not be required in respect of an Investment Trust that is privately placed whose units are not listed on any recognised stock exchange. (ii) the trustee shall appoint the new i....
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.... manager shall oversee activities of the project manager with respect to compliance with these regulations and the project implementation agreement/ project management agreement and shall obtain compliance certificate from the project manager on a quarterly basis. (c) The investment manager shall ensure that the assets of Investment Trust or holdco or SPV have proper legal and marketable titles, to the extent applicable, and that all the material contracts entered into on behalf of Investment Trust or SPV are legal, valid, binding and enforceable by and on behalf of the Investment Trust or SPV. (d) The investment manager shall ensure that the investments made by the Investment Trust are in accordance with the investment conditions and in accordance with the investment strategy of the Investment Trust. (e) The investment manager, in consultation with trustee, shall appoint an auditor for a period of not more than five consecutive years: Provided that the auditor, not being an individual, may be reappointed for a period of another five consecutive years, subject to approval of unitholders in the annual meeting. (f) The investment manager shall ensure that the assets of....
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.... in respect of privately placed Investment Trust whose units are not listed on a recognised stock exchange. (p) The investment manager may appoint a custodian in order to provide such custodial services as may be authorised by the trustees. (q) The investment manager shall place, before its board of directors in the case of a company or the governing board in case of an LLP, a report on activity and performance of the Investment Trust every three months. PART C: ROLES AND RESPONSIBILITIES OF PROJECT MANAGER (a) The project manager shall undertake operations and management of the InvIT assets including making arrangements for the appropriate maintenance, as may be applicable, either directly or through the appointment and supervision of appropriate agents and as required under any project agreement including a concession agreement in the case of a PPP project. (b) If the InvIT invests in under construction projects, the project manager shall,- (i) undertake the operations and management of the projects, either directly or through appropriate agents; (ii) oversee the progress of development, approval status and other aspects of the project up to its c....
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.... (ii) the consolidated value of all such holdings at the SPV level and the value of the units of InvIT held by the sponsor shall not be less than the value of fifteen per cent. (15%) of the total units of the InvIT after initial issue of units on a post-issue basis; (iii) such units of the InvIT and shares or interest in the SPV shall be held for a period of not less than three years from the date of the listing of units of the InvIT; (iv) in case such holding of sponsor in the SPV results in the InvIT not having controlling interest and not having more than fifty one per cent. (51%) shareholding or interest in the SPV, the sponsor shall enter into a binding agreement with the InvIT to ensure that decisions taken by the sponsor including voting with respect to the SPV are in compliance with the requirements in this circular and not against the interest of the InvITs or the unit holders and shall be subject to further guidelines as may be specified by the Authority. PART E: ROLES AND RESPONSIBILITIES OF VALUER (a) The valuer(s) shall ensure that the valuation of the Business assets is impartial, true and fair and is in accordance with these regulations. ....