SEBI Eases Fundraising Norms For Real Estate Investment Trusts, Infrastructure Investment Trusts
SEBI Eases Fundraising Norms For Real Estate Investment Trusts, Infrastructure Investment TrustsSEBI. (pic via Twitter)

The Securities and Exchange Board of India (SEBI) on Monday (28 September) eased the norms for fundraising by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in view of the pandemic.

As per the revised guidelines, REITs and InvITs can now raise funds through institutional placement, two weeks after the previous institutional placement. Earlier, they were required to have a minimum gap of six months between two institutional placements.

In two separate but similarly worded circulars, Sebi said that in view of the situation emerging out of the coronavirus pandemic, it has "granted certain relaxations for raising of equity capital" by listed REITs and InvITs. Sebi said REITs and InvITs "shall not make any subsequent institutional placement until the expiry of two weeks from the date of the prior institutional placement made pursuant to one or more special resolutions".

The SEBI has also made changes in terms of pricing of units by REITs and InvITs for preferential issues.

All allotments arising out of the approval of the same unitholders need to follow the same pricing method. For computation of the lock-in requirement, the units held by the sponsors and locked-in for three years in the past, in accordance with REIT and InvIT Regulations, shall be taken into account, SEBI noted.

(With inputs from IANS)

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber