Key Takeaways
- SEBI eases framework for converting private InvITs into public to promote securities market development.
- The purpose of InvITs is to allow Infrastructure Companies to easily repay their debt obligations.
- SEBI has taken the review following the suggestions of the Hybrid Securities Advisory Group (HySAC) to enhance regularity and clarity.
New Delhi: The Securities and Exchange Board of India (SEBI) eased the framework for converting private listed Infrastructure Investment Trusts (InvITs) into public InvITs.
Investment Infrastructure Trusts (InvITs) are a type of investment vehicle that enables investors to pool their funds and invest in infrastructure projects. The purpose of InvITs is to allow Infrastructure Companies to easily repay their debt obligations.
In an official circular issued by SEBI, it stated that the regulatory authority has taken the review following the suggestions of the Hybrid Securities Advisory Group (HySAC). The HySAC is a committee established by the Securities and Exchange Board of India (SEBI) to oversee the regulation and development of the hybrid securities market.
According to the new official order, Sponsors and their groups must meet the minimum unitholding requirements as specified in InvIT regulations. Additionally, the public offer process for conversions will now follow the framework applicable to follow-on offers, rather than initial public offers.
SEBI also stated that these amendments are aimed at enhancing regularity, clarity, protecting investor interests, and promoting the development of the securities market.
