Sebi issues norms for InvITs listing

Sebi issues norms for InvITs listing

Capital market regulator Securities and Exchange Board of India ( Sebi) on Wednesday issued listing guidelines for infrastructure investment trusts (InvITs).

Like real estate investment trusts ( Reits), InvITs are instrument through which investors can take exposure to income- generating infrastructure assets.

According to Sebi guidelines, public issue of InvITs will require institutional investors participation of 75 per cent, while the remaining 25 per cent can be from other investors. Besides, just like an initial public offering ( IPO), InvIT may allocate up to 60 per cent of the portion available for allocation to Institutional Investors to anchor investors.

For opening of subscription, the InvIT should keep a deposit worth 0.5 per cent of the amount of units offered to the public or Rs.5 crore, whichever is lower with the stock exchange, said Sebi in its guidelines.

InvITs listing are expected to encourage higher foreign investment in the Indian infrastructure sector, reduce the burden on the banking system, and allow developers to unlock tied- up capital.

Business Standard New Delhi,12th May 2016