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

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

11-Apr-2025 | NSDL/CIR/II/11/2025

NSDL has reiterated the SEBI circular regarding the 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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