Seeking to make them attractive options for raising capital,
Sebi on Wednesday notified revised and easier regulations for REITs and InvITs.

To facilitate growth of Real Estate Investment Trusts
(REITs) and Infrastructure Investment Trusts (InvITs), the board of Sebi had
approved relaxations to existing norms in September after extensive public

In this regard, the markets regulator has notified amended
regulations pertaining to REITs and InvITs.

New provisions, including those related to use of funds
raised by these trusts, have been introduced.

As per the revised norms, “general purposes” can
include identified purposes for which no specific amount is allocated in the
offer document. This will be subject to the condition that any issue related
expenses will not be considered as a part of general purpose “merely
because no specific amount has been allocated for such expenses in the offer

It has been made clear that there should be no multiple
classes of units of REITs and InvITs while subordinate ones can be issued only
to sponsors and its associates. This is also subject to the requirement that
such subordinate units should carry only inferior voting or any other rights
compared with other units.

Among others, these trusts will have to refund subscription
amount along with interest to allottees in case they don’t receive listing permission
from the stock exchange.

“In the event of non-receipt of listing permission from
the stock exchange(s) or withdrawal of observation letter issued by the board,
wherever applicable, the units shall not be eligible for listing,” the
regulations stated.

In such cases, REITs and InvITs will have to “refund
the subscription monies, if any, to the respective allottees immediately along
with interest at the rate of 15 per cent per annum from the date of

The Securities and Exchange Board of India (Sebi) notified
the REIT and InvIT regulations that allowed setting up and listing of such
trusts in 2014.