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REITs, InvITs with net worth of Rs 100 cr or higher can issue CPs: Sebi

Capital markets regulator Sebi on Thursday allowed emerging investment vehicles, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), to issue commercial papers

Topics
Reits/Invits rules | REITs | InvITs

Press Trust of India  |  New Delhi 

Sebi
The issuance of listed CPs should be within the overall debt limit permitted under the REITs and InvITs rules, Sebi said

Capital regulator on Thursday allowed emerging investment vehicles, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), to issue commercial papers.

This is subject to certain conditions, the Securities and Exchange Board of India (Sebi) said in two separate circulars.

The move came after Reserve Bank Commercial Paper Directions last month indicated that InvIT and REIT having net worth of at least Rs 100 crore are eligible to issue commercial paper.

The capital regulator said that and may issue listed commercial papers. This is subject to certain conditions, including, and need to abide by the guidelines prescribed by Reserve Bank of India (RBI) for issuances of commercial papers and follow the conditions of listing norms prescribed by .

The issuance of listed CPs should be within the overall debt limit permitted under the and rules, said.

Commercial Paper or CP in market parlance refers to a short-term debt instrument issued by companies to garner funds generally for a time period up to one year.

REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in global .

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

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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First Published: Thu, September 22 2022. 20:01 IST
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