Guidelines for real estate, infrastructure trust listings

real estate infrastructure trust listings guidelines

The Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (InvIT regulations) and the SEBI (Real Estate Investment Trusts) Regulations, 2014 (REIT regulations) were amended on 22 April 2019 which reduced the minimum subscription requirement for publicly offered InvITs and REITs, and increased limits for aggregate consolidated borrowings and deferred payments, net of cash and cash equivalents, to 70% of the value of the InvIT assets. The amended regulations also defined trading lot in terms of the number of units.

Following the amendments, SEBI, through its circular dated 23 April 2019 (circular), prescribed guidelines for determining minimum allotment for publicly offered InvITs and REITs.

The circular states that for the purposes of determining the allotment in an initial public offer, the value of each allotment lot shall not be less than ₹100,000 (US$1,430) for InvITs and ₹50,000 for REITs, where the lot shall consist of 100 units and allotment to investors be made in the multiples of a lot.

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