Realty trusts can issue bonds: SEBI
The move, according to experts, is likely to broaden the fund raising avenues for these trusts.
Mumbai: In order to attract more investors towards real estate investment trusts (REIT) and infrastructure investment trusts (InvIT), the Securities and Exchange Board of India (Sebi) on Monday relaxed norms governing such institutions allowing them to raise capital by issuing debt instruments. The move, according to experts, is likely to broaden the fund raising avenues for these trusts.
The regulator has also removed restrictions on the nature of investors who can participate in real estate investment trust bringing it at par with the infrastructure investment trusts.
Sebi said strategic investors such as registered NBFCs, scheduled commercial banks and multilateral financial institutions could also subscribe to the units issued by such trusts.
It has also relaxed the criteria that requires a REIT to hold atleast two projects directly or through its holding company.