Issuing a clarification on its latest circular in which SEBI has allowed fund houses to take an exposure to REITs and InvITs, the market regulator has directed them to provide an exit option to the investors if they incorporate such changes in the investment mandate of the fund.
That means, investors who wish to discontinue the fund due to exposure of REITs and InvITs can redeem their investment without any exit load. However, SEBI has given a window of 15 days from the date of announcement to avail this benefit.
SEBI has said, “Any existing scheme intending to invest in units of REITs/InvITs shall abide by the provisions of regulation. For investment in units of REITs/InvITs by an existing mutual fund scheme, unitholders of the scheme shall be given a time period of at least 15 days for the purpose of exercising the exit option.”
Earlier this month, SEBI had allowed fund houses to invest up to 10% of their corpus in REITs and InvITs, adding that only 5% of the corpus can be invested in the units of a single issuer.
This has come into immediate effect.
