SEBI has eased norms for REITs and InvITs to float rights issue, preferential issue and institutional placement of units. Here are the changes:
For right issues
- Units have to be listed on exchanges for at least 3 years
- Units to be held in demat form on the record date
- Average market capitalisation of public unit holding should be at least Rs. 250 crore
- Units should be in compliance with the listing and disclosure requirements
- InvITs/ REITs should redress at least 95% of the complaints by quarter-end prior to the month of the record date
- No show-cause notices should have been issued SEBI against the respective promoters/partners/directors as on the record date
- InvITs/REITs should not have been suspended from trading during the last 3 years
- No regulatory action on InvIT/REIT in the 3 years preceding the year rights issue is proposed
- There should be no conflict of interest between the lead merchant bankers and the InvIT/REIT or its associates
For preferential and institutional placement
- Units allotted to sponsor and associates will be locked in for 3 years
- Those with about 25% of the total unit capital also to be locked in for 3 years
- Those with over 25% of the total unit capital the lock-in period will be 1 year
- Lead merchant banker to ensure the information in the draft placement not more than six months old