SEBI BOARD APPROVES MEASURES TO EASE DOING BUSINESS FOR REITS AND INVITS

In a move to enhance efficiency and optimise processes for investors, the SEBI board, on June 27, approved several measures aimed at easing business for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). One key change is the reduction of the payment distribution timeline to investors from 15 days to 5 working days. SEBI Chairperson Madhabi Puri Buch stated that this move is intended to benefit investors by streamlining processes.

The record date will be two working days from the date of declaration of distribution, excluding the date of declaration and the record date.

Buch was speaking at a press meet post the SEBI Board meeting.

The trading lot for privately placed InvITs has been reduced to Rs 25 lakhs from the previous Rs 1 crore. Buch explained, "With all the risk management measures in place, dropping the trading lot to Rs 25 lakh will not be inappropriate. These are obviously not retail investors but HNIs."

The board has also approved changes allowing the Investment Manager of InvITs or the Manager of REITs to convene a meeting of unitholders with a notice shorter than twenty-one days, provided there is prior consent from the unitholders. Additionally, the statement of investor complaints must be placed quarterly before the Board of Directors of the Investment Manager of InvITs or Manager of REITs and the Trustee.

Regarding timelines, Buch noted that SEBI will not mandate changes if investors are agreeable. SEBI has also clarified that any change in the sponsor or inducted sponsor of an InvIT shall include the entry of a new sponsor or the exit of an existing sponsor.

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2024-06-27T15:03:41Z dg43tfdfdgfd