SEBI Reduces Private Placed INVIT Lot Size
ECONOMY & POLICY

SEBI Reduces Private Placed INVIT Lot Size

The Securities and Exchange Board of India (SEBI) has announced a significant reduction in the lot size of privately placed Infrastructure Investment Trusts (INVITs) to Rs 2.5 million, aiming to enhance accessibility and participation from investors. This move marks a proactive step by SEBI to encourage investment in infrastructure projects through the INVIT route.

The decision to lower the lot size comes in response to feedback from market participants and stakeholders, who have long advocated for measures to make INVITs more attractive to a broader base of investors. By reducing the entry barrier, SEBI aims to democratise access to infrastructure investment opportunities and broaden the investor base for INVITs.

INVITs play a crucial role in channelling funds into infrastructure projects, enabling developers to raise capital and investors to benefit from long-term, stable returns. However, the high lot size requirements have often limited the participation of retail and smaller institutional investors in these instruments.

With the new lot size of Rs 2.5 million, SEBI intends to create a more inclusive investment environment, allowing a wider range of investors to participate in the infrastructure sector's growth story. This move is expected to unlock greater liquidity in the INVIT market and attract more capital towards critical infrastructure projects across various sectors.

SEBI's decision reflects its commitment to fostering a conducive regulatory framework for infrastructure financing and promoting the development of India's capital markets. By making INVITs more accessible and investor-friendly, SEBI aims to accelerate the pace of infrastructure development and support the country's economic growth trajectory.

The Securities and Exchange Board of India (SEBI) has announced a significant reduction in the lot size of privately placed Infrastructure Investment Trusts (INVITs) to Rs 2.5 million, aiming to enhance accessibility and participation from investors. This move marks a proactive step by SEBI to encourage investment in infrastructure projects through the INVIT route. The decision to lower the lot size comes in response to feedback from market participants and stakeholders, who have long advocated for measures to make INVITs more attractive to a broader base of investors. By reducing the entry barrier, SEBI aims to democratise access to infrastructure investment opportunities and broaden the investor base for INVITs. INVITs play a crucial role in channelling funds into infrastructure projects, enabling developers to raise capital and investors to benefit from long-term, stable returns. However, the high lot size requirements have often limited the participation of retail and smaller institutional investors in these instruments. With the new lot size of Rs 2.5 million, SEBI intends to create a more inclusive investment environment, allowing a wider range of investors to participate in the infrastructure sector's growth story. This move is expected to unlock greater liquidity in the INVIT market and attract more capital towards critical infrastructure projects across various sectors. SEBI's decision reflects its commitment to fostering a conducive regulatory framework for infrastructure financing and promoting the development of India's capital markets. By making INVITs more accessible and investor-friendly, SEBI aims to accelerate the pace of infrastructure development and support the country's economic growth trajectory.

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