To make REITs and InvITs more attractive to investors, markets regulator Sebi has notified relaxed norms to allow these trusts to raise funds by issuing debt securities. This would be allowed for REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) which are listed on stock exchanges.
Further, Sebi has amended REITs and InvITs regulations in order to facilitate growth of such trusts, Sebi said in notifications posted on its website on Wednesday.
According to the regulator, REITs and InvITs, “whose units are listed on a recognised stock exchange, may issue debt securities in the manner specified by the board provided that such debt securities shall be listed on recognised stock exchange(s)”.
It said debt securities means non-convertible debt securities which create or acknowledge indebtedness and include debentures, bonds and such other securities of a corporate or a Trust registered with Sebi as InvIT and REIT. However, it excludes bonds issued by the government, security receipts and securitised debt instruments.
The Securities and Exchange Board of India (Sebi) has also amended the definition of valuer for both REITs and InvITs.
Regarding REITs, Sebi has allowed strategic investors like registered NBFC, scheduled commercial bank and international multilateral financial institutions to participate in the public issues of such trusts.