Sebi plans to bring follow-on offer rules for REITs, InvITs

economictimes.indiatimes.com:

emerging investment instruments, Sebi is looking to bring in norms for follow-on offers by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). REITs and InvITs were introduced in India to provide investors with an opportunity to gain exposure to real estate and infrastructure projects respectively, with diversification of risks through pooling arrangements. Generally, REITs invest majorly in completed and rent-generating real estate assets. Privately placed InvITs can invest in under-construction assets as well as completed and revenue-generating assets and public InvITs can invest majorly in completed and revenue-generating assets. «Taking cognizance of the potential of REITs and InvITs in driving the future of Indian infrastructure, Sebi would endeavour to further develop the market for REITs and InvITs in the coming years through policy measures including considering bringing in norms for follow-on offers by REITs and InvITs,» Sebi said in its annual report for 2022-23.Krishnan S Iyer, CEO, of NDR InvIT Managers, said given the capital requirements needed for the growth of infrastructure, it is very important that both domestic institutions, mutual funds, and of course retail investors increasingly participated in it. «These are well structured, regulated, and transparent vehicles that give them an avenue for developing a perpetual stream of cash flows, » Iyer added.

Sebi notifies rule; gives board representation to REITs' unitholders

The Securities and Exchange Board of India (Sebi) has been continuously engaged in strengthening the regulatory framework as well as in easing the process for these two products. To streamline the process of public issues of REITs and