New Delhi: After allowing REITs in the country last year, SEBI has now come up with a framework for the rights issue of units by REITs and InvITs which requires disclosing the reasons or the objects of the issue. It also requires disclosing financial details in the offer document.
SEBI has now described the manner in which units can be issued under the rights issue by REITs and InvITs.
In addition to the reasons of the issue and related party transactions, REITs and InvITs will also have to mention the valuation, review of credit rating and grievance redressal mechanism in the offer document.
Both REITs and InvITs are getting popular in India and there have been successful listings of both in the country. While Embassy Group established and listed its REIT last year, there have been two public InvIts- India Grid Trust and IRB InvIT Fund.