SEBI Revamps InvITs to Boost Liquidity and Ease Business Compliance

The Securities and Exchange Board of India (SEBI) has reduced the trading lot size for privately placed infrastructure investment trusts (InvITs) from Rs 1 crore to Rs 25 lakh, aiming to boost investor participation and liquidity. SEBI also amended rules for InvITs and REITs, easing compliance and facilitating quicker distributions.

The Securities and Exchange Board of India (SEBI) has implemented a major change by reducing the trading lot size for privately placed infrastructure investment trusts (InvITs) to Rs 25 lakh. This strategic move aims to encourage more investors to participate, thereby increasing the liquidity of these investment vehicles.

Previously, the trading lot for these market investments was considerably higher, set at Rs 1 crore, or Rs 2 crore if 80% of the InvIT's asset value was in completed revenue-generating assets. SEBI's decision was effective from September 26, immediately providing a broader investor base and boosting portfolio diversification.

Additionally, SEBI has streamlined its regulations on InvITs and real estate investment trusts (REITs) to alleviate compliance pressure. These adjustments include a tighter five-day timeline for distributing investor returns and greater flexibility in convening unitholder meetings, supporting ease of business and a more efficient investment environment.

(With inputs from agencies.)