SEBI reviews norms for converting a private InvIT into a public InvIT

The Securities and Exchange Board of India (SEBI) has released a consultation paper to review the framework for converting privately listed infrastructure investment trusts (InvITs) into public InvITs. The proposed changes aim to simplify existing norms. Key suggestions include removing the lock-in on minimum sponsor contribution and lock-in on units held by the sponsor in excess of the minimum contribution, upon conversion to a public InvIT. Currently, the minimum sponsor contribution is set at 15 per cent of the units offered in the public issue or 15 per cent of the post-issue capital. This contribution is subject to a lock-in for a period of 18 months from the date of listing. Additionally, any sponsor units held beyond the minimum contribution are subject to a one-year lock-in from the listing date.