Market regulator Securities and Exchange Board of India (Sebi) has proposed new rules regarding Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Photo: IANS
Market regulator Securities and Exchange Board of India (Sebi) has proposed new rules regarding Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The new rules are around how they should disclose their financial information, specifically in their public offer documents.
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The proposed revisions focus on financial disclosures in offer documents and continuous compliance requirements post-listing.
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These changes are based on the recommendations from the Working Group on Ease of Doing Business for REITs and InvITs, inputs from the Indian REITs Association and Bharat InvITs Association, and internal deliberations, SEBI said.
REITs and InvITs are investment vehicles that pool money from investors to invest in real estate and infrastructure projects, respectively. They are listed on stock exchanges, allowing investors to buy shares in them like other companies.
Sebi has proposed that REITs and InvITs will be required to disclose combined financial statements for initial public offerings, irrespective of their operational tenure.
Follow-on offers will need to present audited and consolidated financial statements along with links to individual audited reports on their websites, the regulator said.
Condensed financial statements refer to a summary of a company’s financial performance and are presented in less detail than complete financial statements.
To enhance investor protection, the regulator intends to remove the option of disclosing condensed financial statements in the offer document and continuous basis post-listing, aligning REITs and InvITs with SEBI’s ICDR (Issue of Capital and Disclosure Requirements) rules and LODR (Listing Obligations and Disclosure Requirements) norms.
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