Sebi to relax REIT rules to attract investors

In a move to make REITs (Real Estate Investment Trusts) more attractive to investors, markets regulator Sebi plans to relax its norms to allow these 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 REITs in September 2014, but these Trusts have not generated enough interest among 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 stakeholders before making the final changes to the norms, a senior official said.

A consultation process is already underway for making the InViT (Infrastructure Investment Trusts) Regulations.

Besides representations from the industry for making changes to REIT Regulations, Sebi has also held several meetings with market participants and industry bodies including about steps required to smoothen the process of seeking registration with Sebi and launching of an offer.

Sebi to relax REIT rules to attract investors