Transactions involving transfer of resources, services, or obligations between the InvIT (including HoldCo/SPVs) and related parties as defined under SEBI InvIT regulations and Companies Act, 2013.
CORPORATE WISDOM · INVIT AND INFRASTRUCTURE
Related Party Transaction in an InvIT
In One SentenceA Related Party Transaction (RPT) in an InvIT is any contract, asset transfer, or service arrangement between the trust/SPVs and the Sponsor, Investment Manager, Trustee, or their associates, strictly regulated to prevent value leakage.
RPT Safeguards = Arm's-Length Pricing + Independent Valuer Fairness Opinion + Non-Interested Unitholder Voting
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What Related Party Transaction in an InvIT Is Not
Related Party Transaction and Unchecked Self Dealing
All transactions between the InvIT and the sponsor or affiliates require independent valuations, audit committee approval, and minority unitholder consent.
Related Party Transaction and Inherently Harmful Activity
Acquiring stabilized assets from the sponsor is the core growth model of an InvIT, provided pricing is fair and fully disclosed.
Related Party Transaction and Ordinary Board Resolution
Transactions exceeding statutory thresholds require voting where interested sponsors and affiliates are legally barred from voting.
Related Party Transaction and Private Negotiation
Details of related party contracts, acquisition rationales, and independent fairness opinions must be published in unitholder disclosures.
Questions Business Leaders Ask About Related Party Transaction in an InvIT
Are all ongoing O&M and project management contracts priced strictly at arm's length?
Pricing must be defended before the Audit Committee and independent directors.
NORTHAXIS ADVISORY · INVIT SPECIALISATION
InvIT Readiness, Structuring & Capital Markets Advisory
NorthAxis Advisory supports infrastructure developers, sponsors and asset owners in assessing InvIT viability, cash-flow predictability, HoldCo/SPV holding structures, valuation readiness and governance frameworks. All regulated intermediary roles are performed by registered SEBI intermediaries.
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