Sebi proposes easier rules for REITs, InvITs to increase access to investors

To make REITs and InvITs more attractive, markets regulator Sebi Friday came out with a new set of proposals to provide flexibility to the issuers in terms of fund raising and increasing the access of these investment vehicles to investors.

Under the proposal, minimum allotment and trading lot for publicly issued REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) will be reduced.

Besides, it has been proposed that the leverage limit for InvITs should be increased from existing 49 per cent to 70 per cent.

Sebi had notified Real Estate Investment Trusts (REITs) Regulations in 2014, allowing setting up and listing of such trusts which are very popular in some advanced markets. However, till date, as many as three InvITs have issued and listed their units raising about Rs 10,000 crore and one REIT is in the process of making a public offer despite various relaxations given by the markets regulator these investment vehicles failed to attract investors.

Accordingly, the Securities and Exchange Board of India (Sebi) has come out with consultation paper to amend regulations pertaining to REITs and InvITs and sought comments from public till February 18 and the final norms will be put in place after taking views of all the stakeholders.

These proposals are aimed at providing flexibility to the issuers in terms of fund raising and increasing the access of these investment vehicles to investors