Market regulator Sebi on Tuesday proposed relaxing various norms to ease the conversion of private listed InvITs into public, including dropping existing lock-in requirements for sponsors and other unitholders.
Currently, when a private-listed Infrastructure Investment Trust (InvIT) converts into a public InvIT, the sponsor is required to hold at least 15 per cent of the units issued to the public and keep them for 18 months, the Securities and Exchange Board of India (Sebi) said.
Any additional units held by the sponsor beyond the minimum contribution are also locked in for one year. The regulator noted that these rules were introduced in 2022 when sponsors were not required to maintain a perpetual minimum unitholding.
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