InvIT Investment: Lot size reduced to 25 lakh in InvIT

Newv Delhi| Capital market regulator SEBI has given a big gift to investors. SEBI has made a major cut in the transaction size of privately held InvITs to increase investor participation and liquidity of investment instruments. It has been reduced from Rs 1 crore to Rs 25 lakh. At present the lot size for InvITs is Rs 1 crore.
If InvITs invests at least 80 per cent of the value of its assets in full and revenue-earning assets, then the lot of the transaction is two crore rupees. Securities and Exchange Board of India (SEBI) said, this decision has become effective from September 27.
SEBI, in its notification dated September 26, has said that the trading lot for the purpose of trading units on the specified stock market will be Rs 25 lakh. This decision has become effective from that day. This move will help in increasing the liquidity of privately held invite units. This will encourage investors to participate in the market and diversify their investment portfolio. SEBI has also amended the rules related to InvITs and Real Estate Investment Trusts (REITs) to reduce the compliance burden and increase ease of doing business.
SEBI has set a deadline for distribution from REITs and InvITs to unitholders within five working days from the date of announcement. Not only this, permission has been given to call a meeting of unitholders if they give less than 21 days’ notice when consent is given in written or electronic mode.