**Policy Summary:**
This Reserve Bank of India (RBI) circular, reference number DNBR.PD.CC.No.093/03.10.001/2017-18, dated June 07, 2018, addresses the investment in units of Infrastructure Investment Trusts (InvITs) by Systemically Important Core Investment Companies (CIC-ND-SI). The circular permits CIC-ND-SIs to hold InvIT units solely as a sponsor. The exposure of these CICs towards InvITs is limited to their holdings as sponsors and must not exceed the minimum holding of units and tenor stipulated by SEBI Infrastructure Investment Trusts Regulations, 2014. These holdings of InvIT units will be considered as investments in equity shares in group companies for compliance with paragraphs 21 (i) and (ii) of the Master Direction - Core Investment Companies (Reserve Bank) Directions, 2016, as amended. The aforementioned Master Direction has been updated to reflect this change. For further information, contact Manoranjan Mishra, Chief General Manager, Department of Non-Banking Regulation, Central Office, 2nd Floor, Centre I, World Trade Centre, Cuffe Parade, Colaba, Mumbai – 400005, India. Telephone: +91 22 22182526; Fax: +91 22 22162768; Email: cgmdnbrcorbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India.
Systemically Important Core Investment Companies (CIC-NDSI): A category of Core Investment Companies that are deemed systemically important by the Reserve Bank of India.
Infrastructure Investment Trust (InvIT): An investment vehicle that allows sponsors to invest in infrastructure projects.
SEBI Infrastructure Investment Trusts Regulations, 2014: Regulations issued by the Securities and Exchange Board of India (SEBI) governing Infrastructure Investment Trusts.
Master Direction - Core Investment Companies (Reserve Bank Directions, 2016): A set of directions issued by the Reserve Bank of India regulating Core Investment Companies.
Department of Non-Banking Regulation: A department within the Reserve Bank of India responsible for regulating non-banking financial companies.
Manoranjan Mishra: Chief General Manager at Reserve Bank of India
Mumbai, Maharashtra: City in India where the central office of Department of Non-Banking Regulation is located.
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RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2017-18/189
DNBR (PD) CC.No.093/03.10.001/2017-18 June 07, 2018
Systemically Important Core Investment Companies (CIC-NDSI)
Madam/ Sir,
Investment in the units of an infrastructure investment trust (InvIT)
by sponsor CIC-NDSI
In order to enable Systemically Important Core Investment Companies (CIC-NDSI) to
act as a sponsor of InvITs, it has been decided to permit CIC-NDSIs to hold InvIT
units only as a sponsor. Exposure of such CICs towards InvITs 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 SEBI (Infrastructure
Investment Trusts) Regulations, 2014.
2. The above holdings of InvIT units shall be reckoned as investments in equity
shares in group companies, for the purpose of compliance with the norms prescribed
at paragraphs 2(1) (i) & (ii) of the Master Direction - Core Investment Companies
(Reserve Bank) Directions, 2016 as updated from time to time.
3. The aforesaid Master Direction has been updated accordingly.
Yours faithfully
(Manoranjan Mishra)
Chief General Manager
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फोन: (+91-22) 22182526 फैक्स:(91-22) 22162768, Email: cgmdnbrco@rbi.org.in
Department of Non-Banking Regulation, Central Office, 2nd Floor, Centre-I, World Trade Centre, Cuffe Parade, Colaba, Mumbai – 400005, India
Tel.: (+91-22) 22182526 Fax: (91-22) 22162768, Email: cgmdnbrco@rbi.org.in
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