SEBI Makes Listing for REITs and InvITs Mandatory
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.
- Open the Dam Shutters, SC Asks Karnataka to Release 6000 Cusecs of Water to TN
- After Indus Water Treaty, India Will Now Review the Most Favoured Nation Status Given to Pak
- Corruption Accused Ex-Corporate Affairs DG Bansal Commits Suicide Along With Son
- Clinton Puts Trump on Defensive in Fiery First Presidential Debate
- USA: Nine Injured in Shooting at Strip Mall in Houston
- Abandon 'Dream' of Obtaining Kashmir: Swaraj to Pakistan
- Highlights From The First US Presidential Debate
- List Of People Who Have Been At The Receiving End Of A Shoe
- Watch: A Poacher's Court Tries To Save Elephants And Rhinos In Africa
- US Bans Many Soaps With Harmful Chemicals, Indians Too at Health Risk
- 6-Year-Old Boy Wonder Cooks Kerala's Puttu for US Audience on Ellen Show
- Bound By Chain Great Dane Starved To Death
- Yashvardhan Sinha Appointed India's High Commissioner to UK
- BSF Orders More Non-Lethal Weapons for Use at Bangladesh Border
- Pathankot on High Alert, Search Operation Launched
- Curfew Relaxed for Six Hours in Kishtwar District of J&K
- India Confronts Pak Envoy With Proof of Uri Attack's Cross Border Origins
- Pakistani Actors Should Condemn Uri Attack: Anupam Kher
- MOST VIEWED
- MOST COMMENTED