Sebi reduces trading lot size of privately placed InvITs to Rs 25 lakh

Markets regulator Sebi has drastically reduced the trading lot size of privately placed infrastructure investment trusts (InvITs) to Rs 25 lakh in a bid to boost investors' participation and increase liquidity of such investment vehicles.

The current trading lot for secondary market trading for privately placed InvITs is set at Rs 1 crore. Further, if the InvIT invests at least 80 per cent of its asset value in completed and revenue-generating assets, then the trading lot is Rs 2 crore.

"Trading lot for the purpose of trading of units on the designated stock exchange shall be Rs 25 lakh," Sebi said in its notification dated September 26. The move came into effect the same day.

The move will help increase the liquidity of privately placed InvIT units by permitting a broader base of investors to participate in the market and boost diversification of investment portfolios.

In separate notifications, Sebi has amended its rules on infrastructure investment trusts (InvITs) and real estat