September 29, 2017
Board of SEBI decided to amend the SEBI (Infrastructure Investment Trusts) Regulations, 2014 and SEBI (Real Estate Investment Trusts) Regulations, 2014
SEBI’ board meeting was held in Mumbai on 18.09.2017 wherein the board of SEBI decided to amend the SEBI (Infrastructure Investment Trusts) Regulations, 2014 and SEBI (Real Estate Investment Trusts) Regulations, 2014. In order to facilitate growth of Infrastructure Investment Trusts (“InvITs”) and Real Estate investment Trust (“REITs”), SEBI’s board has approved certain changes in the two above said regulations, which, inter alia, include the following:
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Allowing REITs and InvITs to raise debt capital by issuing debt securities;
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Introducing the concept of Strategic Investor for REITs on similar lines of InvITs;
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Allowing single asset REIT on similar lines of InvIT;
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Allowing REITs to lend to underlying holding company/SPV; and
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Amending the definition of valuer for both REITs and InvITs.
Also, SEBI has decided to have further consultation with the stakeholders on a proposal of allowing REITs to invest at least 50% of the equity share capital or interest in the underlying holding company /SPVs, and similarly allowing holding company to invest with at least 50% of the equity share capital or interest in the underlying SPVs. Accordingly, SEBI will float a consultation paper in this regard.
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