Key Reforms Proposed By SEBI To Boost Reits, InvIT Market

Securities and Exchange Board of India (Sebi)

Several reformatory measures have been proposed by SEBI to enhance the real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) markets.

Proposed Amendments

Proposed amendments are aimed at making investment vehicles more accessible and operationally smoother for both issuers and investors. These are open to public feedback till May 22, 2025.

Key Proposals

1. Definition of 'Public' for Minimum Unitholding- Related parties who are qualified as institutional buyers (QIBs) should be included in the public investor category.

2. Cash Flow Adjustments for HoldCos

The amendment proposes that the HoldCos would be allowed to adjust their own negative cash flows against the distributions from SPVs before forwarding the funds to investors.

3. Unified Timelines

SEBI has proposed to keep the submission deadlines with those for financial results in sync.

4. Lower Minimum Investment

In order to make investment vehicles more accessible to a wider range of investors, SEBI proposed to reduce the minimum investment threshold for privately placed InvITs.

5. Investor Charter for Reits, InvITs

Sebi has introduced standardised investor charters for Reits and InvITs in order to enhance transparency and investor protection.

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