SEBI Revises Norms for Converting Private Listed InvITs to Public InvITs

The Securities and Exchange Board of India (SEBI) has announced a revised framework for converting private listed Infrastructure Investment Trusts (InvITs) into public InvITs. The update streamlines sponsor holding requirements and aligns disclosure norms with follow-on offers. Effective immediately, the changes are based on market feedback and recommendations from the Hybrid Securities Advisory Committee.

Updated Sponsor Holding and Lock-In Provisions

Under the revised framework, sponsors and their groups must comply with the minimum unit-holding requirements specified in the InvIT regulations at all times. The lock-in on such units will be as per the regulations, according to SEBI’s circular. These provisions aim to maintain consistent sponsor commitments, thereby enhancing investor confidence in the public InvIT structure.

Alignment with Follow-On Offer Requirements

The regulator has also updated procedural and disclosure norms for public offers during conversion, aligning them with those applicable to follow-on offers. InvITs will now be required to comply with follow-on offer requirements under the InvIT rules and related circulars, including future amendments. 

The changes replace earlier references to "initial offers" with "follow-on offers" in several provisions of SEBI’s May 2024 InvIT norms. SEBI has directed recognised stock exchanges and the Bharat InvITs Association to publish the updated norms on their websites.

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Conclusion

By revising the conversion framework, SEBI aims to protect investor interests, promote market development, and ensure regulatory consistency. These measures are expected to make the transition from private listed to public InvITs smoother and more transparent for market participants.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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