SEBI Unveils New Framework for Faster REITs and InvITs Fundraising

SEBI announced new guidelines for fast-track follow-on offers by REITs and InvITs to enhance fundraising. The framework includes a three-year lock-in for sponsors and stipulates requirements for listing approvals and public unit holdings. These provisions aim to streamline the capital-raising process for these investment trusts.

On Friday, markets regulator SEBI introduced a new framework to expedite follow-on offers by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), aiming to make fundraising more efficient.

The revised guidelines mandate a three-year lock-in period for sponsor-allocated units and outline necessary steps for obtaining listing approvals, while ensuring a minimum public unit holding of 25% post-issue.

Effective immediately, these regulations seek to enhance transparency and streamline capital-raising procedures for REITs and InvITs, facilitating their continued growth and access to investor capital.

(With inputs from agencies.)