InvestorQ : What is the SEBI changing about REITS regulation?
Rashi Mehra made post

What is the SEBI changing about REITS regulation?

Archita Jajjoo answered.
3 weeks ago

SEBI has made an effort to streamline listing requirements for REITs and INVITs. It has cut down the permitted time for allotment and listing of REITs and INVITs from the current 12 days to 6 days. This will synchronize the allotment and listing process of REITs and INVITs with equity IPOs in general. Since REITs and INVITs are also listed on the stock exchanges, such a synchronization makes sense. It will be effective from 01st June 2022.

Both, REITs and INVITs, are investment vehicles that are almost akin to mutual funds. Here the REIT or INVIT pools monies from a large number of investors and then allocates the pool of funds to real estate or infrastructure assets. While REITs put the collected money in commercial real estate, the INVITs put the monies in infrastructure project of revenue generating projects like transmission lines, highways etc.

There are currently 3 listed REITs in Indian markets viz. Embassy, Mindspace and Brookfield which have a combined market capitalisation of $7 billion. Apart from 3 REITs, there are also 6 INVITs listed in the Indian markets. SEBI also asked the self-certified syndicate banks (SCSBs), stock exchanges, depositories and intermediaries to get involved and coordinate with the other counterparties to ensure that the listing process is completed in time.