SEBI Contemplates Framework for Subordinate Unit Issuance in REITs and InvITs

SEBI, the Securities and Exchange Board of India, is actively considering the establishment of a robust framework governing the issuance of subordinate units by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to sponsors. This initiative responds to the dynamic landscape of real estate investments in India, aiming to introduce guidelines that enhance transparency, governance, and investor protection within these financial instruments. As the real estate sector continues to attract significant investments, the proposed framework seeks to address potential challenges and ensure the sustainability and reliability of REITs and InvITs. By establishing clear guidelines for the issuance of subordinate units, SEBI aims to foster a more secure and transparent investment environment. This development aligns with SEBI's commitment to safeguarding the interests of investors and promoting the growth and stability of the real estate investment market in India.