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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL - Reiteration of SEBI circular regarding amendment to Master Circular for Infrastructure Investment Trusts (InvITs) dated May 15, 2024

01-Apr-2025 | CDSL/OPS/DP/POLCY/2025/215

CDSL has reiterated SEBI circular regarding amendment to Master Circular for Infrastructure Investment Trusts (InvITs) dated May 15, 2024.

Key highlights -
1. Para 7.6.1 of the Master Circular on InvITs is modified, 15% of units of the sponsor and sponsor group will be locked in for a period of 3 years from the date of trading approval granted for the units, subject to a condition that the project manager is the sponsor/associate of the the sponsor for a minimum period of 3 years. However, earlier, the provision of 3 3-year lock in period was applicable for units up to 25% of the total unit capital of the InvIT.
2. One-year lock in period for the remaining units allotted to the sponsor and sponsor groups. However, the one-year lock-in period was earlier applicable to units allotted in excess of 25% of the total unit capital of the InvIT.
3. A sub-clause 7.6.5 is inserted regarding the transfer of units allotted under a preferential issue to a sponsor or sponsor group entities, which are subject to lock-in.
4. Chapter 2 of the circular is modified to insert provisions regarding follow-on offer. InvITs are required to pay a fee to the Board as specified in Schedule II for issuing units through a follow-on offer.
5. The minimum public unit holding for follow-on offer shall be at least 25% of the total outstanding units of the InvIT on post-issue basis.


Kindly refer to the attached document for more information.

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