SEBI Allows Privately Placed InvITs to Issue Units

SEBI, the regulatory authority overseeing the Indian financial markets, has introduced a significant change for privately placed Infrastructure Investment Trusts (InvITs). These InvITs will now have the option to issue units through the preferential allotment route to meet the minimum public unitholding requirement. In a recent circular, SEBI outlined this new avenue for privately placed InvITs to fulfill the minimum public unitholding requirement. However, it's imperative to understand that only units issued to the public will be taken into consideration when ensuring compliance with this essential requirement. This development offers greater flexibility to privately placed InvITs and aligns with SEBI's ongoing efforts to streamline regulations in the infrastructure investment sector.