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SEBI hikes leverage limits for InVits to 70%
New Delhi, March 1 (IANS) In a bid to attract more investors to investment trusts, market regulator SEBI on Friday approved amendments to real estate investment trust (REIT) and infrastructure investment trust (InvIT) rules, giving them more flexibility to raise funds.
The Securities and Exchange Board of India (SEBI) raised the leverage limit for InvITs from 49 per cent to 70 per cent.
It also changed norms for valuation of money market and debt securities by mutual funds in order to make the process fairer and uniform across the industry and safeguard investors from defaults. Experts say the step has been taken in view of the IL&FS crisis.
The changes seek to make valuation practices more reflective of the realisable value of money market and debt securities with residual maturity up to 60 days.
Accordingly, the residual maturity limit for amortisation-based valuation by mutual funds will be reduced from 60 days to 30 days.
The threshold maintained between reference price and valuation price would be plus or minus 0.025 per cent, while the reference price would be taken as the security level price given by valuation agencies.
According to the Board’s decision: “The valuation agencies appointed by the Association of Mutual Funds in India (AMFI) may provide valuation of money market and debt securities rated below investment grade.”
The SEBI also approved lowering of fees for brokers and exchanges, as well as granting of permanent registration to custodians, instead of periodical renewal every year.
The SEBI meeting also okayed a 33.33 per cent reduction in fees of brokers from Rs 15 per crore of transactions to Rs 10, while the same for agri-commodity derivative transactions would see a sharp 93.33 per cent reduction from Rs 15 to just Re 1.
On REITs and InVITs, the SEBI said the norms now include those relating to minimum allotment and trading lot, and the value of such allotments, among others. The minimum allotment by REITs/InVITs would be made in multiples of a lot, each consisting of 100 units, while the value of such allotment lot would be Rs 1 lakh for InvITs and Rs 50,000 for REITs.
The increase in the limit would be subject to disclosure and compliance requirements, such as the consolidated debt of the InvIT and the project debt having a credit rating of AAA.
The InvIT will need a minimum track record of 6 distributions on a continuous basis, post listing, in the years just preceding the financial year in which the enhanced borrowings are proposed to be made.
For this, the minimum number of investors would be determined by the issuer, including the maximum holding of units by a single investor. The leverage would be determined by the issuer in consultation with investors.
The underlying assets can be completed, under construction or both, while the minimum investment by an investor cannot be less than Rs 1 crore.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.