SEBI notifies revised norms
Seeking to make them attractive options for raising capital, Sebi on Wednesday notified revised and easier regulations for REITs and InvITs.
To facilitate growth of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), the board of Sebi had approved relaxations to existing norms in September after extensive public consultations.
In this regard, the markets regulator has notified amended regulations pertaining to REITs and InvITs.
As per the revised norms, “general purposes” can include identified purposes for which no specific amount is allocated in the offer document. This will be subject to the condition that any issue related expenses will not be considered as a part of general purpose “merely because no specific amount has been allocated for such expenses in the offer document”.
It has been made clear that there should be no multiple classes of units of REITs and InvITs while subordinate ones can be issued only to sponsors and its associates. This is also subject to the requirement that such subordinate units should carry only inferior voting or any other rights compared with other units.