SEBI proposes new rules for InvITs, REITs
SEBI is looking to make things smoother for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The new proposals would let privately listed InvITs invest up to 10% of their assets in greenfield (brand-new) projects, just like the publicly listed ones.
There's also talk of giving more flexibility to InvITs that already have a lot of debt.
Proposed changes include allowing InvITs to hold onto SPVs
SEBI might lower the bar for where these trusts can park their money, allowing investments in certain mutual funds with slightly higher risk.
Plus, InvITs could soon be allowed to hang onto special project companies (SPVs) even after their main contracts end—as long as they sell or repurpose them within a year.
The proposals include conditions and disclosure requirements, and they're open for feedback until February 26.