SEBI's Major Reforms: Boosting Flexibility for REITs and InvITs

The Securities and Exchange Board of India (SEBI) has introduced significant reforms aimed at improving the operational flexibility of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These measures enable merchant bankers to engage in activities outside SEBI's purview under certain conditions.

Among the approved changes, SEBI outlined that related parties to REIT/InvIT sponsors, investment managers, and project managers will not be considered as 'public' unless they qualify as Institutional Buyers. This distinction impacts the classification of units held by these parties.

Additionally, SEBI has synchronized the timelines for different financial and valuation reports, streamlining the reporting process. The minimum allotment for privately placed InvITs in the primary market has been reduced to align with the secondary market, facilitating easier trading.

(With inputs from agencies.)