Sebi streamlines norms for converting private InvITs to public ones

Sebi has revised the framework for converting private listed Infrastructure Investment Trusts (InvITs) into public InvITs, streamlining sponsor holding norms and aligning disclosure requirements with follow-on offers.

 

The Securities and Exchange Board of India (Sebi) said the changes, effective immediately, are based on market feedback and recommendations of the Hybrid Securities Advisory Committee. 

Under the revised framework, sponsors and their groups must comply with the minimum unitholding requirements specified in the InvIT regulations at all times. 

The lock-in on such units will also be as per the regulations, the regulator said in a circular on Friday.

 

The market regulator has also modified the procedural and disclosure norms for public offers during conversion to bring them in line with those applicable for follow-on offers. 

 

Accordingly, InvITs will have to adhere to the follow-on offer requirements under InvIT rules and related circulars, including any amendments.

 

These changes will replace earlier references to "initial offers" with "follow-on offers" in several provisions of Sebi's norms for InvITs issued in May 2024, as per the circular.

 

The revised framework, effective immediately, aims to protect investor interests, promote market development and ensure regulatory consistency.

 

Sebi has directed recognised stock exchanges and the Bharat InvITs Association to disseminate the updated norms on their websites.