SEBI Proposes Streamlined Valuation Timelines for REITs and InvITs

Sebi proposed aligning valuation report timelines with financial results for REITs and InvITs to enhance business efficiency. The updated timelines would reduce redundancy and streamline processes. Public feedback on the proposals is open until May 22.

The Securities and Exchange Board of India (Sebi) has announced a proposal to synchronize the timelines for valuation reports with financial results for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). This initiative, outlined in Sebi's latest consultation paper, aims to simplify business practices.

Currently, there is a disconnect between when REITs and InvITs conduct and submit their valuations compared to financial result filings. Sebi's proposal suggests annual valuation reports be delivered within 60 days of the fiscal year's end, while quarterly valuations for high-debt InvITs meet a 45-day deadline, matching financial result deadlines.

The board is seeking public feedback on additional proposals, including consistency in trading lots and minimum investment amounts. Public comments on the proposals are invited until May 22, as Sebi works to enhance investor protection frameworks such as SCORES 2.0 and Online Dispute Resolution (ODR).