Monday, July 28, 2014

SEBI: Infrastructure Investments and Portfolio Investments

Infrastructure Investment Trusts

Last last year, we had discussed the SEBI Consultation Paper on Infrastructure Investment Trusts. While the move towards the establishment of infrastucture investment trusts (InvITs) was welcome, certain issues such as tax treatment remained to be ironed out. Now that the tax treatment has been addressed in the Budget 2014, SEBI has published a draft of the SEBI (Infrastructure Investment Trusts) Regulations, 2014 for public comments. Only a short window of 7 days was available for comments, which expired on July 24, 2014. For a more detailed discussion of the implications of this draft as well as a comparative analysis, see The Firm – Corporate Law in India.

Foreign Portfolio Investors

The legal regime surrounding foreign institutional/portfolio has undergone a change with the enactment of the SEBI (Foreign Portfolio Investors) Regulations, 2014. In this regard, SEBI has issued a detailed set of Frequently Asked Questions (FAQs) which deal extensively with the legal and operational aspects for foreign portfolio investors (FPIs). This is particularly useful for industry players as well as the regulators in the implementation of the new regime, and makes the process entirely transparent.

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