SEBI has eased norms for REITs and InvITs for issuing right issues. In its latest circular, the market regulator has done away with the requirement of taking SEBI approval for rights issue.
With this, REIT and InvIT will no longer required to send a draft offer document every time they want to float rights issue.
“Provided further that REITs and InvITs shall not be required to file a draft offer document with the Board in case of a fast track rights issue, subject to the fulfilment of the conditions as specified by the Board from time to time,” SEBI said in a circular.
In another move, SEBI has relaxed criteria for companies to issue units of infrastructure investment trusts (InvITs).
The market regulator has asked companies to issue units of InvITs if they have combined experience of 30 years. Simply put, a company can float units of InvITs if its key employees like CEO, CIOs, fund managers and sales head have 30 years of combined experience in infrastructure sector.
This is in addition to current regulation that allows companies with 5 years of experience in infrastructure sector to issue units of InvITs and REITs.