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Informist, Wednesday, May 7, 2025

 

NEW DELHI – The Securities and Exchange Board of India Wednesday amended the master circulars governing Real Estate Investment Trusts and Infrastructure Investment Trusts to declare financial results every quarter. These changes will come into effect in the period started Apr. 1, the regulator said in two circulars uploaded on its website.

 

Earlier, these trusts had to declare their financial information only in half-yearly and annual intervals. The quarterly filings will have to be done within 45 days of the end of the quarter and the annual result filing can be done within 60 days of the March quarter ending, in line with other listed entities.

 

"The InvIT shall submit financial results in respect of the last quarter along with the results for the entire financial year, with a note stating that the figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year," SEBI said. The same rule applies verbatim to REITs.

 

A statement of Net Distributate Cash Flows will be filed alongside the financial results, the circulars said, and the entity will disclose it in the annual and half-yearly reports. SEBI also added to the list of disclosures the entities will have to make, which will include statements on assets and liabilities, changes in unitholders' equity, cash flows, net assets at fair value and total returns at fair value. These will have to be made on a half-yearly and annual basis only. 

 

Subsequent to their listing, REITs and InvITs must submit financial information for the quarter or financial year immediately after the period for which they have disclosed in the initial offer documents. In addition to making changes on continuous disclosures and compliances, the regulator also made a host of changes in the chapter pertaining to disclosure of financial information in the offer documents of these trusts.

 

These changes include removing the ability of InvITs and REITs to disclose financial information in the form of condensed financial statements. The changes other than from continuous disclosure are applicable immediately. The statements shall still be prepared in accordance with Indian Accounting Standards, or Ind-AS, the regulator said. 

 

In addition to these, the regulator also expanded upon financial declaration to be given in disclosures made by an issuer and disclosures in an offer letter, for both the types of trusts. SEBI had in May 2024 released master circulars on the regulation of REITs and InvITs, which Wednesday's circulars modify. The changes were taken based on the report on the Working Group for review of compliance requirements for REITs and InvITs, recommendations of the Hybrid Securites and Advisory Committee and inputs from the respective associations of the two sets of entities, SEBI said.  End

 

Reported by Aaryan Khanna

Edited by Akul Nishant Akhoury

 

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