SEBI allows InvITs to hold post-project stakes for 1 year
SEBI just rolled out new rules for Infrastructure and Real Estate Investment Trusts (InvITs and REITs) to address delays in exiting SPVs caused by pending claims, litigation or tax assessments.
Now, InvITs can keep their investments in special purpose vehicles (SPVs) even after a project wraps up, but they will need to make a move within a year once any disputes are sorted.
Other key changes introduced
InvITs and REITs can now park extra cash in safer mutual funds with at least an AA rating, which helps spread out risk.
private InvITs also get the green light to invest up to 10% of their assets in projects still under construction.
Plus, SEBI has relaxed some borrowing rules, making it easier for these trusts to raise money for upgrades or big repairs, hopefully leading to more stable and flexible growth down the line.