SEBI Streamlines Framework for Private to Public InvIT Conversion
SEBI has updated the guidelines for converting private Infrastructure Investment Trusts (InvITs) to public ones. The changes involve sponsor holding norms and disclosure requirements for follow-on offers, based on market feedback. The updated framework aims to protect investors, facilitate market development, and ensure regulatory consistency.
- Country:
- India
The Securities and Exchange Board of India (SEBI) has introduced a revised framework to streamline the conversion of private listed Infrastructure Investment Trusts (InvITs) to public InvITs. This change aims to align sponsor holding norms and disclosure requirements with processes for follow-on offers.
SEBI's update, which takes immediate effect, results from inputs from the market and recommendations from the Hybrid Securities Advisory Committee. Key aspects of the revision include ensuring sponsors and their affiliates comply with the minimum unitholding requirements as stipulated in InvIT regulations.
In a circular issued Friday, SEBI mandated that recognised stock exchanges and the Bharat InvITs Association update their websites with these norms. The regulator seeks to protect investor interests, foster market growth, and maintain consistent regulations through these new measures.
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