On June 7, 2018, the Reserve Bank of India (“RBI”) issued a notification RBI/2017-18/189 DNBR (PD) CC.No.093/03.10.001/2017-18 (“Notification”) in connection with investment in the units of an infrastructure investment trust by a sponsor systemically important core investment companies (“SI-CIC”).
By way of the notification, it has been decided to permit SI-CICs to hold units of an infrastructure investment trust only as a sponsor in order to enable SI-CICs to act as a sponsor of infrastructure investment trust. The exposure of such SI-CICs towards infrastructure investment trusts shall be limited to their holdings as sponsors and shall not, at any point in time, exceed the minimum holding of units and tenor prescribed in this regard by the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
The aforesaid holdings of infrastructure investment trust units shall be reckoned as investments in equity shares in group companies, for the purpose of compliance with the norms prescribed under the Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016 as updated from time to time.
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