(PTI)
Sebi has proposed a new set of framework for REITs and 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 (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) will be reduced.
Besides, it has been proposed that the leverage limit for InvITs will be increased from existing 49 per cent to 70 per cent. Sebi had notified 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 have failed to attract investors.Accordingly, the Securities and Exchange Board of India (Sebi) has come out with fresh consultation paper to amend regulations pertaining to REITs and InvITs and sought comments from public till February 18. 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.”At the time of initial/follow-on issue, the minimum application and allotment lot shall be of 100 units and the value of one such lot shall be within the range of Rs 15,000-20,000,” the proposal noted.
