Sebi amends guidelines for real estate, infrastructure investment trusts

Markets regulator Sebi Tuesday amended guidelines for Real estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to ease the process of public issue of their units.

Now, these trusts can accept only Applications Supported by Blocked Amount (ASBA).

Among others, the manager on behalf of the REIT or InvIT will announce the floor price or price band at least two working days prior to the opening of the bid in case of an initial public offer. Currently, it is five days.

In two separate circulars, the Sebi said the amendments have been made to rationalise and ease the process of public issue of units of REITs and InvITs.

Regarding the issue period, it said the trusts may extend the bidding issue period for a minimum of three working days in case of force majeure, banking strike or similar circumstances.

However, the extension should not exceed the thirty-day bidding period.

Investors will be required to submit a completed bid-cum-application form either to self-certified syndicate banks with whom the bank account to be blocked is maintained or to intermediaries.

According to the regulator, intermediaries apart from acknowledging the receipt of applications would also be responsible for uploading the bid along with other relevant details in application forms on the electronic bidding system of stock exchanges.

They will also be required to submit the form to self-certified syndicate banks for blocking of funds.

Stock exchanges have to provide transparent electronic bidding facility and need to validate the electronic bid details with depository's records by the end of each bidding day.