SEBI Amends Rules for REITs and InvITs

The Securities and Exchange Board of India (SEBI) has announced amendments aimed at strengthening the regulatory framework for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These amendments are designed to bolster investor protection and streamline operational norms for REITs and InvITs operating in India.

Under the revised regulations, SEBI has introduced changes to enhance transparency, governance, and operational efficiency in the functioning of REITs and InvITs. The amendments include provisions for stricter compliance requirements, improved disclosure norms, and measures to ensure timely dissemination of information to investors.

SEBI's decision to amend the rules governing REITs and InvITs comes in response to evolving market dynamics and feedback from stakeholders. The amendments aim to foster greater investor confidence by addressing concerns related to governance standards and operational transparency within these investment vehicles.

Key highlights of the amendments include provisions for strengthening the role of trustees, enhancing disclosure norms regarding related party transactions, and introducing guidelines for valuation of assets held by REITs and InvITs. These measures are expected to reinforce the integrity and credibility of REITs and InvITs as preferred investment avenues in the Indian market.

The regulatory amendments underscore SEBI's commitment to promoting the development of REITs and InvITs as viable investment instruments while safeguarding the interests of investors. The revised framework is anticipated to facilitate sustainable growth and stability in the real estate and infrastructure sectors, contributing to India's overall economic development.

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