SEBI advises early structural, financial, and governance readiness for public InvIT listings, covering disclosures, compliance, and post-offer systems.
Key Readiness Areas for Public InvIT Listings
SEBI has emphasized the need for comprehensive pre-filing preparation for public Infrastructure Investment Trust (InvIT) listings. Issuers must undertake early reviews across structure, compliance, financial reporting, valuation, and governance to ensure a smooth listing process.
Structural readiness includes confirming SPV alignment, lease and concession agreements, and third-party approvals. Financial systems must support NAV computation, non-debt cash flow (NDCF) disclosures, borrowing covenants, and adherence to Ind AS. SEBI also stresses third-party verification of offer document disclosures and robust post-listing disclosure mechanisms.
Implication: Legal and transaction teams should initiate multi-disciplinary due diligence early. Pre-emptive testing of disclosure controls and engagement with auditors and valuers are critical. Regulatory scrutiny on asset quality and cash flow sustainability is expected to intensify.