The Securities and Exchange Board of India (“SEBI”), in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, vide Circular No. SEBI/HO/DDHS/DDHS-PoD-2/P/CIR/2025/89,[1] dated June 12, 2025, has implemented further measures to strengthen investor protection and transparency in the Infrastructure Investment Trusts (“”InvITs”) framework. All provisions outlined in this circular shall be effective immediately. (“Circular”)
This follows the previous directives issued through Circulars dated November 26, 2021, and December 16, 2021, now consolidated under Chapters 12 and 13 of the Master Circular for InvITs issued on May 15, 2024.
Key Highlights:
- Investor Charter for InvITs Introduced: As part of SEBI’s ongoing efforts to enhance financial consumer protection, promote financial inclusion, and support investor education, SEBI has formally introduced an Investor Charter specifically for InvITs, as provided in Annexure A of the Circular. The introduction is also aligned with recent developments in market infrastructure, such as the Online Dispute Resolution (ODR) platform and the revamped SCORES 2.0 system.
- Basis and Consultation: The move is the outcome of recommendations from the Hybrid Securities Advisory Committee (HySAC) and aims to standardize and communicate the rights, responsibilities, services, and grievance redressal mechanisms available to investors in InvITs.
- Transparency in Complaint Redressal: InvITs shall be mandated to enhance transparency by disclosing complaint-related data on their websites. This includes:
- Details of complaints received and resolved.
- Segregation of data by category and consolidated reporting.
- Monthly updates, to be published by the 7th day of the succeeding month, in the prescribed format annexed to the circular (in the format provided in Annexure-B of the Circular).
[1]https://www.sebi.gov.in/legal/circulars/jun-2025/investor-charter-infrastructure-investment-trusts-invits-_94557.html