Sebi cuts lot size of private-placed InvITs to Rs 25 lakh

Mumbai, May 10, 2024

Synopsis
"The proposal will help in increasing the liquidity of privately placed InvIT units by allowing a broader base of investors to participate in the market and promote diversification of investment portfolios, enabling investors to better manage risk," Sebi said in a discussion paper on Thursday.

The Securities and Exchange Board of India(Sebi) has proposed to reduce the trading lot size of privately placed infrastructure investment trusts (InvITs) to ₹25 lakh from the existing ₹1 crore.

"The proposal will help in increasing the liquidity of privately placed InvIT units by allowing a broader base of investors to participate in the market and promote diversification of investment portfolios, enabling investors to better manage risk," Sebi said in a discussion paper on Thursday.

As per rules, if the InvIT invests at least 80% of its asset value in completed and revenue-generating assets, the trading lot is ₹2 crore instead of ₹1 crore.

The regulator has also proposed several other measures to facilitate ease of doing business for InvITs and real estate investment trusts (REITs). It has sought public comments by May 30.

[The Economic Times]