The Sponsor Group includes the promoter, parent companies, subsidiaries, and entities under common control with the InvIT Sponsor, aggregated for regulatory holding, lock-in, and voting restrictions.
As defined under SEBI InvIT Regulations, the Sponsor Group encompasses individuals, promoter group entities, and corporate bodies that exercise control over or are controlled by the primary sponsor, treated as a single concert party for disclosures and compliance.
If the main company setting up the InvIT has sister firms, holding companies, or family promoter trusts holding units, SEBI groups them together as the 'Sponsor Group' so they cannot circumvent ownership limits or voting restrictions.
A parent infrastructure conglomerate owns 10% of an InvIT, its holding company owns 8%, and the promoter's family investment vehicle owns 5%. Together, they hold 23% as the Sponsor Group, and their votes are barred from approving related-party contracts between the conglomerate and the InvIT.
When voting on whether the InvIT should buy a new highway from the promoter for ₹800 Cr, the entire 23% Sponsor Group must abstain from voting. Only independent public and institutional unitholders can vote.
Tracking transactions across the entire Sponsor Group requires tight corporate secretarial oversight; any contract with a sister company counts as a Related Party Transaction.
Structure the sponsor group holdings clearly prior to filing offer documents to prevent regulatory ambiguity during SEBI scrutiny.