Sebi eases Reit, InvIT norms


Markets regulator Sebi has reduced the minimum subscription requirement as well as defined trading lots for real estate investment trusts and infrastructure investment trusts.

Reits have to offer their units in lots worth at least Rs.50,000 in initial and follow on public offers.

The minimum value of a single lot should be Rs.1 lakh in the case of InvITs.

Sebi norms pertaining to Reits and InvITs were amended on 22nd April 2019.

“The said amendments have, inter-alia, for publicly offered InvITs and Reits, reduced the minimum subscription requirement and has defined the trading lot in terms of number of units. Further, limits for aggregate consolidated borrowings and deferred payments, net of cash and cash equivalents, have been increased to 70% of the value of the InvIT assets,” the regulator said in a circular.

The amendments are aimed at providing flexibility to the issuers in terms of fundraising and increasing the access of these investment vehicles to investors.

Moreover, the trading lot has been defined in terms of number of units.






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