facebook.com/Outlookindia twitter.com/outlookindia digimag.outlookindia.com instagram.com/outlookindia youtube.com/user/OutlookMagazine

SEBI Makes Listing for REITs and InvITs Mandatory

New Delhi

To safeguard investors' interest in the newly created business trust structures -- REITs and InvITs -- Sebi norms will require them to mandatorily list on stock exchanges and follow stringent norms for disclosures, related party transactions and valuation of their assets.

The new norms for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), instruments that will help attract more funds into these key sectors, was approved by the board of market regulator Sebi yesterday.

As per the regulations, "units of REITs shall have to be mandatorily listed on a recognised stock exchange and REIT shall make continuous disclosures in terms of the listing agreement".

Similarly, "listing shall be mandatory for both publicly offered and privately placed InvITs and InvIT shall make continuous disclosures in terms of the listing agreement."

The norms would also include detailed provisions for related party transactions with respect to these trusts.

Besides, provisions pertaining to valuation of assets, disclosure requirements, rights of unit holders, among others, are also provided for under the norms, Sebi has said.

"For any issue requiring unit holders' approval, voting by a person who is a related party in such transaction as well as its associates shall not be considered," it added.

The regulations also require the trustees of REITs and InvITs to be independent and not an associate of the sponsor or the manager of the Trust.

The new norms would help in channelising domestic investments into real estate and infrastructure sectors, and also help attract foreign capital for these fund-starved segments of the economy.

READ MORE IN:
PLACES: Mumbai
SECTION: Business
OUTLOOK 11 August, 2014
© Copyright PTI. All rights reserved. Republication or redistribution of any PTI content, including by framing or similar means, is expressly prohibited without their prior written consent.
Download the Outlook ​Magazines App. Six magazines, wherever you go! Play Store and App Store

Post a Comment

You are not logged in, please Log in or Register
  • Daily Mail
THE LATEST ISSUE
CLICK IMAGE FOR CONTENTS
OUTLOOK ON TWITTER
POLLS

The cricket icon is reported to have tried to curry favour with Defence Minister Parrikar for a friend's property adjoining defence land in Mussoorie. Parrikar is said to have declined to help. The recipient of India's top honour is also busy endorsing various products. Is India's legendary batsman insulting the Bharat Ratna, which was given to him after amending rules?

POLL STARTED ON: Jul 19, 2016
Quiz
Kashmir has been the scene for massive protests following the killing of Hizbul commander Burhan Wani on July 8. “Non-lethal” pellet guns used against the protesters have blinded many and 45-odd people have died in the face-off against security forces. The scale of protests have led to frayed tempers in the mainland with many resorting to high-voltage jingoism. But how well do you know Kashmir? Find out, take this quiz.
QUIZ STARTED ON: Jul 25, 2016
Advertisement