Sebi puts in place framework for conversion of private listed InvITs

Capital markets regulator Sebi on Wednesday came out with a framework for conversion of a private listed Infrastructure Investment Trust (InvIT) into a public InvIT.

In addition, the regulator has issued guidelines for converting a private unlisted InvIT into a private listed one. In a circular, Sebi said a private listed InvIT may convert into a public InvIT on making a public issue of units through a fresh issue and/or an offer for sale.

A listed private InvIT has to comply with various requirements, including having at least 5 investors other than the sponsor(s), its related parties and its associates.