SEBI cuts timeline for listing REITs, InvITs units to six working days
- SEBI reduced the timelines for the listing of units of REITs and InvITs
- It has reduced the time taken for listing six days from the present 12 days
- SEBI issued the circular to safeguard the interest of investors
Securities Exchange Board of India (SEBI) reduced the timelines for the listing of units of Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT).
The regulator has reduced the time taken for the allotment and listing after the closure of the REITs and InvITs issue to six days from the present 12 days.
The new timeline will apply to a public issue of units of Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), which opens on or after June 1, market regulator SEBI said in two separate circulars.
SEBI said "As a part of the continuing endeavour to streamline the process of public issue of units of REIT and InvITs. It has been decided to reduce the time taken for allotment and listing after the closure of an issue to six working days as against the present requirement of within 12 working days”.
The regulator has directed Self Certified Syndicate Banks (SCSBs), stock exchanges, depositories, and intermediaries to coordinate to ensure completion of listing through the public issue and commencement of trading of units of REITs and InvITs within six working days from the date of closure of the issue.
The move is aimed at simplifying and streamlining the process of issuance of such emerging investment vehicles.
SEBI issued the circular to safeguard the interest of investors in securities and promote the development of and regulate the securities markets. The circular is issued after the approval of the competent authority.
REITs and InvITs are relatively new investment options in the Indian markets but are highly popular in global markets.
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REIT consists of a portfolio of commercial real assets, a major portion of which is already leased out. InvITs comprise 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, from which six InvITs and three REITs were listed on the stock exchanges.