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Sebi tweaks pricing method for institutional placement by private InvITs
Capital markets regulator Sebi on Thursday came out with revised pricing guidelines for institutional placements by privately placed infrastructure investment trusts (InvITs) in a bid to promote ease of doing business.
Under the new guidelines, privately placed InvITs can undertake institutional placement based on net asset value (NAV) of InvIT's assets.
"The institutional placement by privately placed InvIT shall be made at a price not less than the NAV per unit, based on the full valuation of all existing InvIT assets conducted in terms of InvIT Regulations," the Securities and Exchange Board of India (Sebi) said in a circular.
As per the current rule, the institutional placement by InvIT needs to be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class quoted on the stock exchange during the two weeks preceding the relevant date.
The decision has been taken based on the request of the industry in respect of pric