Assessing The Regulatory Compliance Framework For Infrastructure Investment Trusts In India
- IJLLR Journal
- 47 minutes ago
- 2 min read
Adv. Saniya Deogaonkar, India International University of Legal Education and Research (IIULER), Goa, India
ABSTRACT
The expansion of India's securities regulatory framework has substantially increased the compliance obligations imposed upon regulated entities, giving rise to important questions regarding the relationship between regulatory oversight and operational efficiency. While these compliance obligations play a critical role in the effective functioning of the capital market, it is also a very pertinent matter of what should be the correct approach for the proper regulation of securities that balances regulatory efficacy with efficiency. This is particularly significant for the purpose of discussing the compliance obligations of Infrastructure Investment Trusts (InvITs) that are under a multiple-tiered structure of compliance obligations including disclosures, governance, valuations, listings and ongoing compliance requirements.
While the existing body of literature on InvITs considers many of their aspects such as infrastructure financing, performance, regulatory development and protection of investors; only a small amount of research has been done regarding the critical analysis of the compliance system per se. this article aims at filling that gap through a critical review of the regulatory system applicable to InvITs and determining whether the overall compliance framework placed on the sponsors, trustees, investment managers and InvITs is balanced properly.
This article uses doctrinal research methodology, which involves the examination of statutes, subordinate legislation, judicial decisions, SEBI guidelines and circulars, policy papers and literature review. The article does not raise doubts regarding the importance of regulation but it analyses the balance and consistency of the compliance regime in place and makes suggestions about reforming the regime with a view to making compliance simpler without sacrificing the transparency and accountability. In this manner, the article advances the ongoing discussion of proportionality in the context of securities laws in India by making compliance an object of independent legal research.
Keywords: Infrastructure Investment Trusts (InvITs), Securities and Exchange Board of India (SEBI), regulatory compliance, compliance framework, regulatory proportionality, securities regulation, corporate governance, regulatory efficiency.
