Sebi allows Reits, InvITs to issue debt securities

Regulator also allows a REIT to lend to the underlying holding company or special purpose vehicle

Capital market regulator Securities and Exchange Board of India (Sebi) on Monday allowed infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) raise capital by issuing debt securities. The Sebi board, at its meeting on Monday, also made several other relaxations to the InvIT and REIT framework to give a boost to the stalled infrastructure projects in the country.

InvITs and REITs are investment vehicles that allow investors take exposure to an income-generating infrastructure project or real estate property. Prior to this development, the framework only allowed launch of equity-oriented REITs and InVITs, which offer only indicative yields, not fixed