SEBI cuts listing time for real estate and infrastructure investment trusts
New Delhi:
In a bid to streamline the process of public issue of units of REITs and InvITs, market regulator Securities and Exchange Board of India (SEBI) on Thursday reduced the time taken for listing of such emerging investment vehicles to six working days from the existing 12 days. done.
The new rule will be applicable to public issue of units of Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), which opens on or after June 1, Sebi said in two separate circulars. The move is aimed at simplifying and cost-effective the existing process of issuance of such emerging investment vehicles.
“As a part of the continuous effort to streamline the process of public issue of units of REITs and InvITs. It has been decided that the time taken for allotment and listing after closure of an issue, as against the present requirement be reduced to six working days. Within 12 working days,” SEBI said.
The regulator has asked Self-Certified Syndicate Banks (SCSBs), stock exchanges, depositories and intermediaries to ensure completion of listing (through public issue) and commencement of trading within six working days from the date of trading of units of REITs and InvITs asked to coordinate. closure of the issue.
REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in the global markets.
Whereas a REIT consists of a portfolio of commercial real properties, a large proportion of which is already leased, InvITs include a portfolio of infrastructure assets, such as highways and power transmission assets.
As of March 2021, a total of 15 InvITs and four REITs were registered. Of these, six InvITs and three REITs were listed on stock exchanges.