One significant regret for outgoing Sebi chief U K Sinha has been that not even one Real Estate or Infrastructure Investment Trust could get listed during his tenure, though he expects this to happen within two months.
Addressing his last press conference as Chairman of the Securities and Exchange Board of India (Sebi), Sinha said that the reason for no REIT or InvIT being launched was, however, beyond its jurisdiction and it was more to do with approval from other regulators for investees of these new instruments.
Sinha, who would demit office tomorrow after holding the chairmanship of Sebi for six years, expressed confidence that the first InvIT (Infrastructure Investment Trust) would be launched in less than two months from now.
Regulations for InvITs and REITs (Real Estate Investment Trusts), which are popular in some advanced markets, were notified back in 2014.
"One of my significant regrets is that I could not see a REIT or InvIT being launched during my time. I was hoping and hoping that I will be able to see it...," Sinha said during a press meet here.
"I am sure that in less than two months from now, the first InvIT will be launched. This is the feedback I am getting from the participants...," he added.
While emphasising that the reason for no InvIT or REIT getting listed is not due to Sebi, Sinha sought to put the onus on other regulators.
"... And the reason why it has not been launched is not because of Sebi. It has something to do with other regulators because they have to take some decision about allowing their regulated entities to participate in InvITs and REITs market. That is the main reason.
"We are in dialogue with them and they have assured us that they are going to take a decision," he said.
Not a single trust has been set up as of now as investors want further measures, including tax breaks, to make these instruments more attractive.
Sebi had notified revised and easier norms for REITs and InvITs.
So far, Sebi has granted approval to at least four companies -- IRB Infrastructure, GMR, MEP Infrastructure and Reliance Infrastructure -- to launch InvITs.
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