SEBI's Landmark Proposal for Enhanced Financial Disclosures in REITs and InvITs

SEBI proposed a draft circular for REITs and InvITs to align their financial disclosure in offer documents with listing norms. The updates aim to enhance transparency by removing condensed financial statements and mandating detailed disclosures. Stakeholders can provide feedback until March 7.

The Securities and Exchange Board of India (SEBI) has introduced a draft circular proposing critical updates for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The move aims at aligning financial disclosures in offer documents with the norms required for public issues and listings.

This proposal, born from extensive recommendations and internal discussions, mandates these entities to disclose wide-ranging financial statements, regardless of their operational tenure, and audited consolidated financial reports for follow-on offers. The regulator also plans to eliminate the option of presenting condensed financial documentation, thereby fostering a complete understanding of financial performance.

Enhancing investor protection, SEBI also suggests the quarterly submission of deviation statements, reducing the current requirement from biannual. Public feedback on this draft is sought through an online form by March 7, emphasizing commitment to comprehensive regulatory standards.