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Cut in Holding Norms for InvITs may Squeeze the Pressure on Banking System

News:

To make it easier to raise funds for infrastructure projects from capital markets, Sebi today proposed to relax its norms for Infrastructure Investment Trusts (InvITs) by lowering the sponsors' mandatory holding to 10 per cent and by allowing greater operational flexibilities. 
Source: ET

SNP Insight:

Reduction of sponsors holding from 25% to 10% in InvITs is a thoughtful move by the SEBI to raise more fund and cuts the onerous of company to maintain the stake to 25%. This may also reduce the pressure on the banking system while making available fresh equity for infrastructure segment to finance/refinance the projects.
Source: SNP Infra Research