The Securities and Exchange Board of India (SEBI) has invited comments from the public on the draft framework for the conversion of private listed infrastructure investment trusts (InvITs) into public InvITs. A 2024 SEBI circular requires InvITs to convert from private to public for improved efficiency.
The proposed changes are based on the Hybrid Securities Advisory Committee’s recommendations. Conversion stages under review are:
(1) A lock-in period of 18 months from the date of listing for a minimum sponsor contribution, which is 15% of the units issued through public issue or 15% of post-issue capital. If more than the minimum sponsor contribution units are held, the lock-in period is one year;
(2) A one-year lock-in from the date of listing for units held by non-sponsors prior to the issue; and
(3) Disclosures in the offer document filed for the public issue of units for conversion.
The SEBI also proposes that the disclosure and procedural requirements of the public issue of units applicable to follow-on offers, shall also apply to the offer of units made to the public for conversion. The public can submit comments here until 22 July 2025.
