Central Depository Services (india) Limited · NSE:CDSL
Central Depository Services (india) — Investor Presentation (December 2021)
19 slides from Central Depository Services (india)'s investor presentation, Dec 10, 2021
Slide 1: Introduction to Infrastructure Investment Trusts (InvITs)
Introduction to Infrastructure Investment Trusts (InvITs)
Slide 2: Disclaimer
Disclaimer Information contained in this presentation is as on December 10, 2021 The information contained in this presentation is only for Educational and Awareness Purposes related to securities market. This presentation is only for Educational and Investor Awareness Programs and shall not b
Slide 3: Flow of Presentation
Flow of Presentation 1. What are InvITs? - Overview; 2. Structure of InvITs; 3. Role of Constituents in InvITs; 4. Cash flow in InvITs; 5. Benefits of investing in InvITs; 6. Who can invest in InvITs; 7. How to own Units of InvITs; 8. Rights of unitholders in InvITs; 9. Taxation aspects of InvITs; 1
Slide 4: What are InvITs? - Overview
What are InvITs? - Overview InvITs stands for Infrastructure Investment Trusts. InvITs are also like mutual funds that pool money from investors. InvITs own and operate operational infrastructure assets like highways, roads, pipelines, warehouses, power plants, etc. They offer regular income (
Slide 5: Structure of InvITs
Structure of InvITs Sponsor Investor Sets up InvIT No lock-in – units freely Lock-in restrictions tradeable from listing date Trusteeship Fee Asset Management Fee Trustee Investment Manager InvIT Holds InvIT’s assets for the InvIT Manages and makes investment decisions in benefit of unit h
Slide 6: Role of constituents in InvITs
Role of constituents in InvITs • Sets up the InvIT Sponsor • Transfers its shareholdings in SPV / assets to the InvIT • Appoints the Trustee • Holds the InvIT assets in trust for the benefit of the unit holders Trustee • Responsible for ensuring that the business activities and investment policies c
Slide 7: Cash flow in InvITs : An illustration
Cash flow in InvITs : An illustration Unitholder Distributed to Unitholders For tax treatment in the hands of Unitholders make investment in to InvIT by subscribing to its units Unitholders, distributions are divided into – Dividend – Interest – Return of Capital InvIT Distribution in the form o
Slide 8: Where can an InvIT invest its funds ?
Where can an InvIT invest its funds ? At least 80% of the value of a public InvIT to be invested in ‘completed and revenue - generating’ infrastructure projects. A maximum of 20% of the total value of InvITs can be from: Under construction infrastructure projects Listed or unlisted debt of t
Slide 9: Key Features of InvITs
Key Features of InvITs Focus Asset Class: Predominantly completed Infra Assets with >=80% of the Key Unit Holders’ value of the InvIT from Rights: revenue-generating Mandatory To vote on matters infrastructure projects Distribution: related to a) material 90% of the net acquisition/borrowing; distri
Slide 10: Benefits of investing in InvITs
Benefits of investing in InvITs InvIT 1 2 3 4 5 6 Provide Free Up Low-risk Facilitation of To Bring Long-term Developer investments ownership of Higher Capital for offered to Standards of Financing diversified Growth attract long- Governance Option Reinvestment term Infrastructure Potential into New
Slide 11: Who can Invest in InvITs?
Who can Invest in InvITs? Any investor (domestic / foreign / retail / institutional) can buy InvIT units in India; The minimum subscription amount for public InvITs is in the range of ₹10,000 to ₹ 15,000/- and the trading lot is 1 unit. (revised w.e.f. July 30, 2021) Previously it was ₹1 lakh &
Slide 12: How to own units of InvITs
How to own units of InvITs Investors can own InvITs in following manner: • By subscribing to issue in Initial Public Issue (IPO) or Follow- on Issue of InvITs, • By purchasing units of InvITs from Stock Exchange, where they are listed, Procedures for the bidding, application, payment, and Allotm
Slide 13: How to own units of InvITs (contd.)
How to own units of InvITs (…. contd.) • Investors are required to pay the full Bid Amount or instruct the bank to block the full Bid Amount at the time of Bidding, • Investors should note that Allotment to successful Bidders will be only in the dematerialized form, • Mention correctly the details o
Slide 14: Rights of unitholders in InvITs
Rights of unitholders in InvITs Right to receive returns through cash distributions made by the trust Right to vote on matters pertaining to acquisition of new assets or borrowing Right to vote on related party matters Right to vote on matters such as appointment or change of the Investment
Slide 15: Taxation aspects in InvITs
Taxation aspects in InvITs Nature of Distribution Tax Treatment in the hands of Investor # Interest income Taxable Dividends Exempted (If the SPV has not opted for the lower tax regime) Taxable (If the SPV has opted for the lower tax regime) Revenue from Taxable underlying infrastructure assets # In
Slide 16: Regulations to protect the interests of InvITs unitholders
Regulations to protect the interests of InvITs unitholders Securities SEBI (InvITs) Regulations, 2014 Exchange SEBI (Listing Obligations and Disclosure Requirements) Board of India Regulations, 2015 (SEBI) SEBI (Prohibition of Insider Trading) Regulations, 2015 Reserve Foreign Exchange Manag
Slide 17: Points to Ponder while investing in InvITs
Points to Ponder while investing in InvITs Stability of income of Trust depends on the stability of income earned from the assets of Trust, Invest in InvITs which offer better transparency, Investment in InvITs is to generate income and also to earn capital gains Due diligence to be made bef
Slide 18: Additional Information
5. Additional Information For Further Information, you may visit following websites: w w w. s e b i . g o v. i n / h t t p s : / /i n v e s t o r . s e b i . g o v . i n/ For Grievance Redressal, you may visit following website: w w w. s c o r e s . g o v. i n / Or, you may call SEBI at fo
Slide 19: Thank You
THANK YOU 19
Central Depository Services (India) — Investor Presentation (December 2021) on 6ix