Securities market regulator SEBI has eased norms for real estate investments trusts (REITs) and infrastructure investment trusts (InvITs) to raise funds from strategic investors.
According to a SEBI circular, REITs and InvITs can invite subscriptions from strategic investors.
“The strategic investor(s) shall, either jointly or severally, invest not less than 5 per cent and not more than 25 per cent of the total offer size,” SEBI said in a circular issued on Thursday.
“The investment manager or manager on behalf of the InvIT or REIT, shall enter into a binding unit subscription agreement with the strategic investor(s), which propose(s) to invest in the public issue of InvIT or REIT.”
The circular further states that subscription price per unit, “payable by the strategic investor(s), shall be set out in the unit subscription agreement and the entire subscription price shall be deposited in a special escrow account prior to the opening of the public issue”.
“The price at which the strategic investor(s) has or have agreed to buy units of the InvIT or REIT shall not be less than the issue price determined in the public issue,” the circular reads.