📷 Image: Wikimedia Commons / Don Ramey Logan
Business
SEBI trims cooling‑off period for private InvITs to eight weeks
✍️ Asianet Newsable
🗓 03 Nov 2026, 02:17 AM
👁 16
The Securities and Exchange Board of India has reduced the mandatory cooling‑off period for private infrastructure investment trusts from the earlier duration to eight weeks, aiming to boost market liquidity.
The Securities and Exchange Board of India (SEBI) announced a revision of its regulations governing private Infrastructure Investment Trusts (InvITs). Effective immediately, the mandatory cooling‑off period that investors must observe before selling their units has been shortened to eight weeks, down from the previous longer timeframe.
SEBI said the move is intended to enhance liquidity in the InvIT market and make it easier for investors to re‑allocate capital. The regulator also reiterated its commitment to fostering a robust secondary market for infrastructure assets.
Industry participants have welcomed the change, noting that a shorter lock‑in period could attract more institutional and high‑net‑worth investors to private InvITs, which have been growing as an alternative financing avenue for infrastructure projects.
The amendment aligns with SEBI’s broader agenda of simplifying compliance requirements and encouraging deeper participation in capital markets.
The revised rule will apply to all private InvITs currently registered with SEBI, and the board will monitor its impact on market dynamics in the coming months.
SEBI said the move is intended to enhance liquidity in the InvIT market and make it easier for investors to re‑allocate capital. The regulator also reiterated its commitment to fostering a robust secondary market for infrastructure assets.
Industry participants have welcomed the change, noting that a shorter lock‑in period could attract more institutional and high‑net‑worth investors to private InvITs, which have been growing as an alternative financing avenue for infrastructure projects.
The amendment aligns with SEBI’s broader agenda of simplifying compliance requirements and encouraging deeper participation in capital markets.
The revised rule will apply to all private InvITs currently registered with SEBI, and the board will monitor its impact on market dynamics in the coming months.