More Stories

Informist, Wednesday, Jun. 18, 2025

 

NEW DELHI – The Securities and Exchange Board of India's board Tuesday approved changes in the norms related to activities of Real Estate Investment Trusts, or REITs, and Infrastructure Investment Trusts, or InvITs, aimed at improving ease of doing business. Changes include classification of related parties as public, distribution of cash flow by the holding companies, and change in timelines for submission of reports, according to a press release by the regulator.

 

Related parties of REITs and InvITs, and the related parties of the sponsor, investment manager and project manager shall not be considered 'public' unless they are qualified institutional buyers. In addition, the sponsor, sponsor group, investment manager and project manager shall always be excluded from being classified as 'public', whether or not they are qualified institutional buyers.

 

Prior to this amendment, units held by related parties of sponsor, investment manager, project manager were not classified as units held by 'public'.

 

Holding companies can adjust the negative net distributable cash flows it generates against the cash it receives from the special purpose vehicle to distribute the cash to the REIT and InvIT. Earlier, the holding companies were mandated to distribute full cash flow it received from the underlying special purpose vehicle to the REIT or InvIT.

 

SEBI has also approved streamlining the timelines for submission of various reports such as quarterly reports with the timelines of submission of financial results. These quarterly reports include the disclosures of certain financial information of the REITs and InvITs. 

 

The regulator has approved reducing the minimum allotment lot in the primary market for privately placed InvITs to INR 2.5 million, similar to the trading lot size in the secondary market. Earlier, the minimum allotment lot in the primary market for privately placed InvITs was from INR 100 million-INR 250 million, depending on its asset mix.   End

 

Reported by Anand JC

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.