SEBI Revises Lock-in Rules for InvIT Preferential Issues and Introduces Framework for Follow-on Offers

SEBI has amended the Master Circular for Infrastructure Investment Trusts (InvITs) with two key modifications. First, the lock-in provisions for preferential issue of units have been revised to align with Regulation 12(3) of InvIT Regulations, requiring 15% of units allotted to sponsor(s) and sponsor group(s) to be locked-in for three years (25% if the sponsor is not the project manager). Additionally, inter-se transfers of locked-in units among sponsor group entities are now permitted subject to continuing lock-in requirements. Second, SEBI has introduced a comprehensive regulatory framework for follow-on offers by publicly offered InvITs, including filing requirements, disclosure standards, and listing procedures. These amendments took immediate effect on March 28, 2025. .....

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