With an aim to make REITs more attractive to investors, markets regulator Sebi plans to relax its norms to allow these trusts to invest more in under-construction assets and have a larger number of sp
With an aim to make REITs more attractive to investors, markets regulator Sebi plans to relax its norms to allow these trusts to invest more in under-construction assets and have a larger number of sponsors.
The Securities and Exchange Board of India (Sebi) had put in place its regulations for Real Estate Investment Trusts (REITs) in Septe-mber 2014. But these trusts have not generated enough interest amo-ng investors and industry players who have been seeking further measures to make them attractive.
While the government has already announced various taxation related and other sops for REITs, Sebi has now decided to further amend its regulations by taking into account representations received from various quarters.
A proposal to amend REIT Regulations would be placed before Sebi’s Board next week, after which a consultation paper would be floated for seeking further comments from various sta-keholders before making the final changes to the norms, a senior official said. A consultation pro-cess is already underway for making the InViT Regulations.
Besides representations from the industry for making changes to REIT regulations, Sebi has held several meetings with market participants about steps required to smoothen the process of seeking registration with Sebi and launching of an offer.
