MUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) on Monday permitted real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) to issue bonds, as part of measures it has been taking to help attract investors to a capital-starved property sector.
Earlier, these trusts could only raise funds through equity.
The latest tweak in rules was announced by SEBI after its board meeting late on Monday.
The regulator also allowed single-asset REITs, in contrast to a previous rule where the trust needed at least two projects under it, with one of the projects limited to 60 percent of the value of assets.
SEBI also allowed strategic investors to participate in REITS, in line with InvITs.
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In 2014, SEBI allowed the setting up and listing of REITS and InvITs - listed entities that invest in rent-yielding assets and distribute most of their income to shareholders as dividends. However, only two InvITs have gone public so far.
(Reporting by Abhirup Roy and Suvashree Dey Choudhury; Editing by Biju Dwarakanath)
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