Policies · BFSI
SEBI has cut the cooling-off period for offer-for-sale transactions in illiquid private listed InvIT units to eight weeks, with the change taking effect immediately and retail investor provisions excluded from such offers.
✦ AI SUMMARY 30-second read
- Cooling-off period for OFS of illiquid private listed InvIT units reduced to eight weeks, effective 2 November.
- Such OFS transactions will remain open for one trading day only, with no retail investor provisions applicable.
- Recognised stock exchanges have been directed to update systems, bye-laws and rules, and inform market participants.
Why it matters: The revised framework is intended to ease business operations for private listed InvITs and follows feedback from market participants.
This summary was generated by AI. Editors may review and update it.
Document details
| Document type | Rules & Regulation |
|---|---|
| Issued by | SEBI |
| Region | India |
| Published | 2 November 2026 |
The Securities and Exchange Board of India has reduced the cooling-off period for offer-for-sale transactions involving units of illiquid private listed Infrastructure Investment Trusts to eight weeks. The revised provision came into effect on 2 November and was communicated through a circular issued by the regulator.
SEBI said the change is aimed at facilitating ease of doing business and follows feedback received from market participants. The revision modifies paragraph 19.2 under Chapter 1 of SEBI's Master Circular dated December 30, 2024, which had laid down the comprehensive OFS framework for shares, including units of REITs and InvITs.
What the document says
Under the revised framework, the cooling-off period for private listed InvITs whose units are illiquid will be eight weeks. SEBI has clarified that the broader OFS framework applicable to equity shares of listed companies will also apply to the sale of REIT and InvIT units, subject to certain conditions.
OFS transactions involving private listed InvITs will remain open for only one day — the trading day on which the offer takes place. Provisions relating to retail investors under the general OFS framework will not apply to such transactions.
The trading lot for InvITs will continue to be the same as the lot applicable in the secondary market under the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Who is affected
The revised rules apply directly to private listed InvITs whose units are classified as illiquid, and to sellers undertaking OFS transactions in such units through the stock exchange mechanism.
Recognised stock exchanges are also affected, as SEBI has directed them to put in place necessary systems to implement the changes and amend relevant bye-laws, rules and regulations wherever required.
What happens next
Stock exchanges have been directed to inform market participants, including investors, about the revised provisions and to disseminate the circular on their websites.
The exchanges are required to update their systems and make amendments to their bye-laws, rules and regulations in line with the new framework.
