Sebi Revises Framework for InvIT Conversion

In a significant move to enhance market efficiency and investor protection, the Securities and Exchange Board of India (Sebi) has revised the framework governing the conversion of private listed Infrastructure Investment Trusts (InvITs) to public InvITs. These changes, effective immediately, align disclosure norms with follow-on offers and ease sponsor requirements.

Key Updates to Sponsor Holding and Disclosure Norms

The updated guidelines mandate that sponsors and their associated groups maintain minimum unitholding requirements as per InvIT regulations. Additionally, the lock-in period for these units will adhere to existing regulations, ensuring stability and investor confidence.

Alignment with Follow-on Offer Standards

Sebi has harmonized the procedural and disclosure requirements for public offers during conversion with those for follow-on offers. This includes adhering to stipulated requirements under InvIT rules and associated circulars, with provisions for future amendments.

Note: References to "initial offers" in Sebi's InvIT regulations from May 2024 will now be replaced by "follow-on offers" across various provisions.

Regulatory Adjustments for Investor Safeguarding

These immediate adjustments aim to safeguard investors, enhance market efficiency, and maintain consistent regulatory standards. Recognized stock exchanges and the Bharat InvITs Association have been instructed to publish these updated regulations on their websites.