The Securities and Exchange Board of India on Thursday mentioned the time taken for allotment and itemizing of REITs (actual property funding trusts) and InvITs (infrastructure funding trusts) after the closure of difficulty could be diminished to 6 working days, in opposition to the present requirement 12 working days. The new guidelines shall be relevant to the general public problems with REITs and InvITs which open on or after June 1, 2022, Sebi mentioned in two separate circulars.
Both REITs and InvITs are funding automobiles just like mutual funds, whereby sponsors/managers pool cash from traders, which is additional invested in actual property and infrastructure tasks. According to an EY report launched final 12 months, REITs and InvITs have raised capital of over $4 billion in India, whereas the mixed market capitalisation of the three listed REITs in India has surged over $7 billion. As of March 2021, 6 InvITs and three REITs are listed on the exchanges.
Sebi on Thursday mentioned the transfer is to additional streamline the method of public points of those funding automobiles. Further, the regulator has requested self licensed syndicate banks (SCSBs), inventory exchanges, depositories and intermediaries to coordinate and guarantee completion of itemizing (by the general public difficulty), and graduation of buying and selling of items of REITs and InvITs inside six working days from the date of closure of the difficulty.
In August final 12 months, the markets regulator had amended the rules of those two funding automobiles to boost their attain to a bigger set of traders. Sebi diminished the minimal software quantity for REITs from Rs 50,000 to Rs 10,000-15,000. Further, the buying and selling lot dimension of REITs was diminished from 200 earlier to single unit. The amendments had been made to draw retail traders who restricted themselves from investing in such funding automobiles as a result of excessive entry barrier.