What are the differences between Sponsor of an InvIT and Promotor of a Company ?

Sponsor of InvIT The Sponsor of an InvIT is the author of the InvIT and is responsible for transferring or undertaking to transfer the initial portfolio of the assets to the InvIT and is responsible for the formation transactions involved in setting up and establishing an InvIT. Sponsor is required to lock in 15% or 25% (as the case may be) of the outstanding units of the InvIT, held by it, for a period of three years and any additional unitholding for a period of one year. Promoter of a Company Promoter shall include a person who has control over the affairs of the issuer, directly or indirectly whether as a shareholder, director or otherwise, or in accordance with whose advice, directions or instructions, the Board of directors of the issuer is accustomed to act. A financial institution, scheduled commercial bank, mutual fund, venture capital fund, alternative investment fund, foreign venture capital investor, insurance company registered with IRDA or any other category as specified by SEBI shall not be deemed to be a promotor merely by virtue of the fact that 25% or more of the equity share capital of the issuer is held by such person unless such person satisfies other requirements prescribed under SEBI (Issue of Capital and Disclosures Requirements) Regulations, 2018. A promoter can be reclassified as a non-promoter subject to conditions whereas a Sponsor cannot.