REITs, InvITs to disclose investor complaints on websites, exchange filings

Markets regulator Sebi on Thursday said all complaints received by emerging investment instruments REITs, InvITs will have to be disclosed on their websites, to stock exchanges in a prescribed format.

Markets regulator Sebi on Thursday said all complaints received by emerging investment instruments REITs and InvITs will have to be disclosed on their websites and to stock exchanges in a prescribed format.

These trusts need to ensure that adequate steps are taken for expeditious redressal of investor complaints.

In separate circulars, Sebi said all complaints including SCORES received by InvIT and REITs will have to be disclosed in the format on their respective websites and also filed with the stock exchange(s) where their units are listed within 21 days from the end of financial year or end of quarter, as the case may be.

REITs (real estate investment trusts) and InvITs (infrastructure investment trusts) are relatively new investment instruments in the Indian context but extremely popular in global markets.

While a REIT comprises a portfolio of commercial real assets, a major portion of which are already leased out, InvITs comprise a portfolio of infrastructure assets such as highways, power transmission assets.

When these products were introduced in the Indian markets in 2014, threshold investment amount was kept high because they were new products and investors in general were not aware of their risk return profile.

Gradually, the instruments were made available to a wider class of investors by reducing the allotment and trading lots.

Earlier on Thursday, Sebi Chairman Ajay Tyagi said these products have taken off since 2017 and more so in the last two years.

"Out of the total funds raised of around Rs 900 billion by REITs and InvITs together till date, more than Rs 620 billion have been raised after 2019-20," he said.

In just around four years from the time since the first InvIT was listed, total assets under REITs and InvITs have grown to Rs 3.5 trillion, he added.