Sebi revises InvIT rules for private to public conversion: Disclosure norms aligned with follow-on offers; sponsor requirements eased

Sebi has modified the framework governing the transformation of private listed Infrastructure Investment Trusts (InvITs) to public InvITs, with updated sponsor holding requirements and harmonised disclosure norms.

The market regulator implemented these modifications with immediate effect, following industry feedback and guidance from the Hybrid Securities Advisory Committee, according to

The updated guidelines require sponsors and their associated groups to maintain minimum unitholding requirements as specified in InvIT regulations consistently.

According to the circular released on Friday, the lock-in period for these units shall remain in accordance with existing regulations.

Sebi has additionally revised the procedural and disclosure requirements for public offers during conversion to ensure alignment with follow-on offer standards.

InvITs must now follow the stipulated requirements for follow-on offers under InvIT rules and associated circulars, including future amendments.

The circular indicates that previous references to "initial offers" in Sebi's InvIT regulations from May 2024 will be superseded by "follow-on offers" across various provisions.

These immediate regulatory adjustments aim to safeguard investors, enhance market efficiency and maintain consistent regulatory standards.

The regulator has instructed recognised stock exchanges and the Bharat InvITs Association to publish these updated regulations on their respective websites.

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