SynopsisIndia's InvITs sector, managing ₹7 lakh crore in assets, is urging regulators for simpler M&A rules. Industry leaders want change of control guidelines to match those for listed companies. This aims to attract more investors by streamlining acquisition processes. Current rules can make buyers acquire more units than intended.AgenciesThere are currently 24 listed InvITs, spanning roads, power transmission, renewables, telecom and gas pipelines. Road InvITs alone account for about ₹3 lakh crore of the total AUM as of March 2026.New Delhi | Mumbai: The InvITs industry with ₹7 lakh crore of assets under management is seeking M&A-friendly guidelines from regulators for the asset class to be able to attract more investors, several industry executives said.Their request is that guidelines for change of control transactions involving InvITs should have parity with market regulator Sebi's open offer guidelines, they said.In the case of change of control in a listed company wherein an acquirer picks up a 25% stake or more from an existing promoter, the acquirer needs to make a further offer to buy up to 26% of the shares held by public equity shareholders.In the case of InvITs, three fourth of unit holders, other than the InvITs sponsor, need to approve a change of control transaction. This could mean that the liability of a buyer could extend beyond the 26% offer they would need to make in the case of a listed company.For instance, if only 67% of unit holders of an InvIT who are in the category of public, consent to a change of control, an acquirer would theoretically have to buy 33% of the unit holders who did not consent.More InvITs are coming up and there "may be many opportunities" for change in sponsor, said Danny Samuel, chief executive officer of the publicly listed Roadstar Trust."In theory, the incoming buyer may end up buying a very large portion of public/non-sponsor units. Bharat InvITs Association has submitted a white paper to Sebi to make regulations simpler for incoming buyers and perhaps make it similar to requirements for equity holders with similar limits," said Samuel.AgenciesM&A Enabler: Seek open offer-type mechanism, say 75% of unit holders, other than sponsor, now need to okay sale of an InvIT"If the current norms are indeed cumbersome, then having a tried and tested approach from the takeover code being adopted makes sense," said a former regulatory official.While some believe open offer thresholds akin to those for listed companies will help M&A transactions in InvITs take off, others said minor changes in the way threshold limits for approval of changes in control are calculated are also in order."Any change in sponsor or change in control of sponsor in an InvIT, or an InvIT becoming self-sponsored, requires approval from 75% of all unitholders by value. In widely held InvITs with large institutional and retail participation, achieving this threshold can become practically difficult," said Harsh Shah, managing director of publicly listed Indigrid, a KKR-backed InvIT."The representation has, therefore, suggested that the approval threshold may instead be linked to unitholders present and voting, similar to several other listed market processes," he said.There are currently 24 listed InvITs, spanning roads, power transmission, renewables, telecom and gas pipelines. Road InvITs alone account for about ₹3 lakh crore of the total AUM as of March 2026.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless