Last Update: February 02, 2023, 17:38 IST
REITs and InvITs do not have many schemes or categories of units. (file photo)
Real Estate Investment Trust, Infrastructure Investment Trust are set up as business trusts to own and operate revenue generating real estate or infrastructure assets respectively.
Sebi on Thursday proposed to allow REITs and InvITs to issue depository receipts to provide an opportunity to foreign investors to participate in units of Indian emerging investment instruments. This will be beneficial for foreign investors as Depository Receipts (DR) avoid the need to trade directly with the Stock Exchange, Securities and Exchange Board of India. India (SEBI) said in a consultation paper.
Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have been established Business Trusts own and operate revenue-generating real estate or infrastructure assets, respectively. REITs and InvITs raise funds largely by issuing units to the public.
REITs and InvITs do not have many schemes or categories of units. The units are denominated in Indian Rupee and the units are also required to be listed on a recognized stock exchange in India.
“Permitting issue of depository receipts against units of REITs and InvITs, which are listed on foreign stock exchanges, gives an opportunity to foreign investors to participate in units of Indian REITs and InvITs,” SEBI said.
The Securities and Exchange Board of India (SEBI) has sought public comments on the proposed regulatory framework by February 21.
Listing the eligibility criteria, SEBI proposed that REITs and InvITs would be eligible to issue depository receipts to issue permissible securities if such trusts, their directors and selling unit holders are not restricted by SEBI from accessing the capital market. are done, they should not be. Willful defaulter or fugitive economic offender.
Existing unit holders will be eligible to transfer permissible securities for issue of Depository Receipts subject to certain conditions.
The listing of DRs on international exchanges should meet the highest applicable standards. REITs and InvITs should ensure that DRs are issued only with units as permissible securities.
REITs and InvITs should file a copy of the origination document for DRs issued on the back of permissible securities with SEBI and a recognized Indian stock exchange. Further, the final documents for such initial issues should also be filed with them for record purposes.
SEBI said that REITs and InvITs should ensure that any public disclosure made by them on international exchanges is in compliance with the requirements of the permissible jurisdiction where the DRs are listed. These disclosures should also be made with the recognized exchange within 24 hours from the date of filing.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)