Cooling off period for offer for sale by Private listed InvITs
The Securities and Exchange Board of India (SEBI) has introduced a mandatory waiting period for private listed Infrastructure Investment Trusts (InvITs) to launch Offer for Sale (OFS) rounds. This rule means these trusts cannot sell their existing shares in the market for a set duration after listing, preventing them from flooding the market with new supply.
This move is designed to protect the trust's unit holders by reducing the risk of a sharp price drop due to sudden selling pressure. For investors, it signals a more controlled approach to fundraising by InvITs, which often hold long-term infrastructure assets like toll roads and power plants. It helps maintain stability in the unit price and ensures that any sale is spread out over time rather than happening all at once.
Key takeaways
- Category: Sector.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.














