Sebi cuts listing time for REITs, InvITs - Check latest and updated details

Securities and Exchange Board of India on Thursday reduced the time taken for the listing REIT and InvIT to six working days from the present 12 days. Sebi has done so to streamline the process of public issue of units of such emerging investment vehicles, as per PTI report.

The new regulation would apply to public issues of Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT) units that open on or after June 1, according to two separate circulars issued by the Securities and Exchange Board of India (Sebi).

The move is intended to make the current process of issuing such new investment vehicles easier and more cost-effective, said PTI.

"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," Sebi said.

According to PTI, the regulator has asked Self Certified Syndicate Banks (SCSBs), stock exchanges, depositories, and intermediaries to work together to guarantee that the listing (through the public issue) and trading of REIT and InvIT units are completed within six working days of the issue's closing date.

In the Indian context, REITs and InvITs are relatively new investment instruments, yet they are immensely popular in worldwide markets.

A REIT has a portfolio of commercial real estate, the majority of which is already leased, whereas an InvIT owns a portfolio of infrastructure assets, such as highways and power transmission assets. There were 15 InvITs and four REITs registered as of March 2021. On the stock exchanges, six InvITs and three REITs were listed.

(With PTI inputs)