Outlook Money
Several reformatory measures have been proposed by SEBI to enhance the real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) markets.
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.
1. Definition of 'Public' for Minimum Unitholding- Related parties who are qualified as institutional buyers (QIBs) should be included in the public investor category.
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.
SEBI has proposed to keep the submission deadlines with those for financial results in sync.
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.
Sebi has introduced standardised investor charters for Reits and InvITs in order to enhance transparency and investor protection.