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
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
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
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