Realty, infra trusts can use bond market route – Times of India
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MUMBAI: Markets regulator Sebi on Tuesday allowed real estate investment trusts (REITs), infrastructure investment trusts (InvITs) and other specifically created entities in the real estate and infrastructure space with less than a three-year track record to tap the bond market.
However, it said such issues should be through the exchange’s bond-trading platform and only institutional investors will be allowed to participate in it. But unlisted entities cannot tap this fund-raising route.
“This will enable special purpose vehicles created for specific infrastructure purposes/NBFCs/listed REITs/ listed InvITs and other companies who propose to list debt securities purely on private placement basis but who do not have a three-year existence history, to list their debt securities issued on private placement basis.”
The Sebi board further amended its REIT and InvIT rules to lower the minimum trading lot for listed issues to Rs 10,000-15,000.
It also revised the trading lot to one unit. Currently, for InvITs, the minimum investment size is Rs 1 lakh while for REITs it is Rs 50,000 and a trading lot should have 100 units.
However, it said such issues should be through the exchange’s bond-trading platform and only institutional investors will be allowed to participate in it. But unlisted entities cannot tap this fund-raising route.
“This will enable special purpose vehicles created for specific infrastructure purposes/NBFCs/listed REITs/ listed InvITs and other companies who propose to list debt securities purely on private placement basis but who do not have a three-year existence history, to list their debt securities issued on private placement basis.”
The Sebi board further amended its REIT and InvIT rules to lower the minimum trading lot for listed issues to Rs 10,000-15,000.
It also revised the trading lot to one unit. Currently, for InvITs, the minimum investment size is Rs 1 lakh while for REITs it is Rs 50,000 and a trading lot should have 100 units.
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