India Development News & Foreign Investment Opportunities

SEBI works on framework to boost REITs and InvITs

Stakeholders’ comments sought


Stakeholders’ comments sought




The Securities and Exchange Board of India (SEBI) has proposed a new set of framework for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in order 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 and InvITs will be reduced, reported Press Trust of India on 30 Jan 2019.

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

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 market regulator, these investment vehicles have failed to attract investors.

Responding to the slower pace of listing these listing tools, which are important as the Indian economy progresses, SEBI has come out with fresh consultation paper to amend regulations pertaining to REITs and InvITs.

It has also sought comments from public till 18 February 2019.

The final norms will be put in place after taking views of all the stakeholders.

Industry observers see big potential of raising funds through REITs and InvITs for India’s trillion dollar infrastructure and industrial developments.

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