SEBI Cuts Cooling-Off Period For Illiquid Private Listed InvIT OFS To Eight Weeks, New Rules Effective Immediately
New Delhi [India], November 2: The Securities and Exchange Board of India (SEBI) has reduced the cooling-off period for offer for sale (OFS) of units of illiquid private listed Infrastructure Investment Trusts (InvITs) to eight weeks, with the revised provision coming into immediate effect.
The move is aimed at facilitating ease of doing business and follows feedback received from market participants, according to a circular issued by the market regulator on Monday.
Revised Cooling-Off Period Takes Effect
Under the revised framework, the cooling-off period for private listed InvITs whose units are illiquid will be ±8 weeks. The change has been incorporated into the existing OFS framework governing the sale of units of Real Estate Investment Trusts (REITs) and InvITs through the stock exchange mechanism.
SEBI said the broader OFS framework applicable to equity shares of listed companies would also apply to the sale of REIT and InvIT units, subject to certain conditions.
Trading Lot And Retail Provisions
For InvITs, the trading lot will continue to be the same as the lot applicable in the secondary market under the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Norton Introduces New 450 CC Urban Motorcycle, Bringing Its Distinctive Character To A New GenerationThe regulator has also clarified that provisions relating to retail investors under the general OFS framework will not apply to OFS transactions involving private listed InvITs. Such offers will remain open for only one day, or the trading day on which the offer takes place.
Changes To Existing OFS Framework
The revised provision modifies paragraph 19.2 under Chapter 1 of SEBI's Master Circular dated December 30, 2024, which had laid down the comprehensive framework for OFS of shares, including units of REITs and InvITs.
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Stock Exchanges Directed To Implement Changes
SEBI has advised recognised stock exchanges to put in place the necessary systems to implement the changes and make amendments to their relevant bye-laws, rules and regulations wherever required.
The exchanges have also been directed to inform market participants, including investors, about the revised provisions and disseminate the circular on their websites.
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