Sebi puts in place guidelines for listed REIT, InvIT

Markets regulator Sebi on Friday put in place a framework for the rights issue of units by listed REIT and InvITs, calling for disclosure of objects of the issue, financial details in the offer document by such investment instruments. In two separate circulars, the regulator specified the manner of issuance of units under the rights issue by listed real estate investment trust (REIT) and infrastructure investment trust (InvIT). Sebi said the issuer will have to disclose objects of the issue, related-party transactions, valuation, financial details, review of credit rating and grievance redressal mechanism in the placement document. The Securities and Exchange Board of India (Sebi) had first notified REITs and InvIT Regulations in 2014, allowing setting up and listing of such trusts which are popular in some advanced markets. Ever since Sebi introduced InvITs, the market witnessed listing of two public InvITs — IRB InvIT Fund and India Grid Trust, while three InvITs — IndInfravit Trust, India Infrastructure Trust, Oriental InfraTrust — were privately placed. On the other hand, Embassy Office Parks REIT is the only listed real estate investment trust.