SEBI approves amendment to InvITs and REITs Regulations

PR No.: 57/2017

                                                                                    SEBI Board Meeting                                           

The SEBI Board met in Mumbai today and took the following decisions:

Amendments to the SEBI (Infrastructure Investment Trusts) Regulations, 2014 and SEBI (Real Estate Investment Trusts) Regulations, 2014

 In order to facilitate growth of Infrastructure Investment Trusts (InvITs) and Real Estate investment Trust (REITs), SEBI Board, has approved certain changes in the captioned regulations, which, inter alia, include the following:

  1.           Allowing REITs and InvITs to raise debt capital by issuing debt securities
  2.           Introducing the concept of Strategic Investor for REITs on similar lines of InvITs

   iii.          Allowing single asset REIT on similar lines of InvIT

  1.           Allowing REITs to lend to underlying Holdco/SPV
  2.           Amending the definition of valuer for both REITs and InvITs

Further, the Board, after deliberations, decided to have further consultation with the stakeholders on a proposal of allowing REITs to invest at least 50% of the equity share capital or interest in the underlying Holdco/SPVs, and similarly allowing Holdco to invest with at least 50% of the equity share capital or interest in the underlying SPVs.

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