Page 2 - Invits

Sebi to relax rules around mandatory borrowing from corporate bond market

Regulator could also clear framework for index providers; decisions likely at Thursday's board meet

Market regulator Sebi to bring follow-on offer rules for REITs, InvITs

To develop the market for emerging investment instruments, Sebi is looking to bring in norms for follow-on offers by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). REITs and InvITs were introduced in India to provide investors with an opportunity to gain exposure to real estate and infrastructure projects respectively, with diversification of risks through pooling arrangements. Generally, REITs invest majorly in completed and rent-generating real estate assets. Privately placed InvITs can invest in under-construction assets as well as completed and revenue-generating assets and public InvITs can invest majorly in completed and revenue-generating assets. "Taking cognizance of the potential of REITs and InvITs in driving the future of Indian infrastructure, Sebi would endeavour to further develop the market for REITs and InvITs in the coming years through policy measures including considering bringing in norms for follow-on offers by REITs and ..

India's first public InvIT for road, highway projects in the works

Govt seeks to increase Indian investment in road InvITs

Cube Highways Trust secures Rs 1,030 cr funding from IFC via long-term NCDs

The funds raised through this deal will be utilised for a special purpose vehicle (SPV) owned by Cube Highways Trust

Sebi gives norms for compliance with 25% minimum public holding rules

Markets regulator Sebi on Tuesday provided methods such as an offer for-sale mechanism, rights issue and issuance of bonuses to unitholders of REITs and InvITs to achieve compliance with the 25 per cent minimum public holding requirement. The rule mandates that any listed REIT (Real Estate Investment Trust) or InvIT (infrastructure investment trust), which has public unitholding below 25 per cent, will have to increase its public unitholding to at least 25 per cent within a period of three years from the date of listing of units. To facilitate REITs and InvITs to achieve minimum public unitholding compliance, Sebi said that managers of these trusts will have to adopt any method suggested by the regulator. Methods include the issuance of units to the public through an offer document, offer for sale (OFS) of units held by the sponsor, manager and their associates to the public through an offer document and OFS of units through the stock exchange mechanism for compliance with the ...

Sebi comes out with disclosure formats of governance compliance for REITs

Capital markets regulator Sebi on Monday came out with disclosure formats for compliance reports on governance and annual secretarial for emerging investment vehicles -- REITs and InvITs. These would come into force from the financial year 2023-24 onwards, the Securities and Exchange Board of India (Sebi) said in four separate circulars. Under the format for compliance report on governance, Sebi said infrastructure investment trusts (InvITs) and real estate infrastructure trusts (REITs) will have to disclose the name of the investment managers, the composition of the board of directors of the investment managers as well as the composition of committees, meetings of the board of directors, along with meetings of committees, on a quarterly basis. In addition, the regulator has issued separate formats for the financial year that need to be submitted by the investment managers of InvITs and REITs. For the governance report, such investment managers are required to submit a quarterly ..

Sebi asks REITs, InviTs to hold securities of SPVs, Holding Cos in demat

To encourage ease of doing business and improve transparency, capital markets regulator Sebi on Monday asked REITs and InvITs to hold the securities of holding companies and special purpose vehicles (SPVs) in dematerialized form only. The investment manager of the REIT (real estate investment trust) and InvIT (infrastructure investment trust) will have to ensure the same, Sebi said in two separate circulars. Further, for existing securities holdings by REITs and InvITs in Holding Companies and SPVs in physical form, the investment managers have been directed to dematerialise such securities by June 30. Under the rules, the units of REITs and InvITs would be issued only in the dematerialised form to all the applicants. REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in global markets. While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, InvITs comprise a portfolio of .

Sebi offers rights to unitholders of REITs, InvITs for corporate governance

With an aim to strengthen governance norms, markets regulator Sebi on Tuesday proposed special rights to unitholders of REITs and InvITs by providing the right to nominate representative on the boards. Also, the regulator has suggested the concept of self-sponsored real estate investment trust (REIT) or infrastructure investment trust ( InvIT), according to a consultation paper. In addition, Sebi has proposed that principles of stewardship code should be applicable to members, nominated by the unitholders, on the board of directors of investment manager of REIT and InvIT. The proposed move would empower unitholders of REITs and InvITs to monitor their investment in REIT/InvIT and assist in decision making. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals till May 29. REITs and InvITs were introduced in India to provide investors with an opportunity to gain exposure to real estate and infrastructure projects respectively, with ...

IL&FS transfers Pune Sholapur Road asset to Invit at value of Rs 2,000 cr

IL&FS has completed transfer of its fifth road asset - Pune Sholapur Road Development Company Limited (PSRDCL) - to Roadstar Infra Investment Trust (Invit) as part its debt resolution strategy. With this transfer, secured lenders of this asset will get full recovery of their dues under the Invit structure while the group lenders will be issued Invit units as settlements for their loans, IL&FS said in a statement. The four road assets that have already been transferred to the Invit structure include - Moradabad Bareilly Expressway Limited (MBEL); Sikar Bikaner Highway Limited (SBHL); Hazaribagh Ranchi Expressway Limited (HREL) and Thiruvananthapuram Road Development Company Limited (TRDCL), it said. The total Enterprise value of Invit, with these five assets, now stands at around Rs 7,300 crore. The new IL&FS Board, as part of its strategy to resolve Rs 99,000 crore debt (as of October 2018), had opted to use the Invit route to address nearly Rs 15,000 crore debt under its .

Global PE major KKR sells RE InvIT Virescent to IndiGrid for Rs 4,000 cr

The transaction will involve IndiGrid taking over all of VRET's 16 project special purpose vehicles, and Virescent will get delisted and dissolved, said executives

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Slowly but surely, mutual funds warm up to investment in REITs, InvITs

Exposure up sevenfold in three years to Rs 5,200 cr

Cube Highways and Infra InvIT raises Rs 5,226 cr from BCI, Mubadala

Canadian pension investment manager British Columbia Investment, Abu Dhabi's sovereign investor Mubadala and domestic institutional investors subscribed to the offering, the company said in a release

RIL to set up $2.4-3 bn InvIT to monetise retail warehousing assets

Reliance Industries Ltd (RIL) has started the process to set up an infrastructure investment trust (InvIT), under which the group can monetise the backend warehousing and logistics assets of its retail business, said industry sources. Reliance Retail, the company which operates the retail business of the billionaire Mukesh Ambani-led Reliance Industries, has already registered a trust with the market regulator Securities and Exchange Board of India (Sebi) in February this year, they added. The trust will store the warehouse assets that the group intends to monetise. According to a media report, the value of the assets that could be transferred to the InvIT is USD 2.4-3 billion (Rs 19,000-25,000 crore). More assets are likely to get added as they become operational, it added. An e-mail sent to Reliance Retail could not elicit any reply. Reliance Retail, which is aggressively expanding its presence across the channels, is investing in backend infrastructure such as warehousing, supp

India Inc leans on InvITs to reduce debt, generate returns for investors

Reliance Retail to join the club; High returns attract overseas investors to InvITs

NSE Indices launches India's first REITs & InvITs index with six securities

Weights of securities to be based in their free-float market cap, exposure to a particular REIT or InvIT not to exceed 33%; aggregate weight of top-three securities capped at 72%

Cube Highways files document for privately placed Rs 5,226-crore InvIT

The InvIT, Cube Highways Trust, will raise Rs 3,803 cr in fresh capital and Rs 1,423 cr by way of secondary share sale by sponsor Cube

Fundraising via REITs hits all-time low in FY23 on higher yields on debt

Higher yields on bonds, lack of new launches, limited availability and awareness among investors have made emerging investment instruments REITs and InvITs less attractive with fundraising hitting an all-time low at Rs 1,166 crore in 2022-23. Going forward, a change in the tax rule on distributions classified as repayment could lead to a substantial increase in tax liability as it will be taxed as 'other income' in the hands of the investor, making the instruments less attractive, Manavi Prabhu, Head Fixed Income, Anand Rathi Shares and Stock Brokers, said. These assets will have to either generate better underlying yields or will have to reduce the price to ensure that they are more attractive than existing fixed-income investment options, he added. According to data compiled by Prime Database.com, a total of Rs 1,166 crore was mobilised by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) together in 2022-23. In comparison, Rs 13,841 crore was ..

Government proposes tax relief for REITs and InVITS in Finance Bill 2023

In a relief to REITs and InVITs, the Finance Bill on Friday proposed to treat distribution from business as return of capital. While presenting the Union Budget on February 1, the government had proposed to tax income distributed by business trusts like REITs and InVITs in the form of debt repayments at the hands of unitholders. However, the government on Friday proposed to soften the tax impact on Real estate investment trusts (REITs) and Infrastructure investment trusts (InVITs) through amendments to the Finance Bill 2023. The Bill has been approved by the Lok Sabha. The Finance Bill had earlier proposed to tax distribution from business trust as income from other sources at applicable rate. "This is now proposed to be treated as return of capital, i.e reduction from cost of acquisition, till the cost at which the unit was issued," an official said. However, any amount in excess of the issue price would be taxable as income. Thus, the change would benefit the unitholders vis-a

Sebi extends deadline till Mar 15 to submit comments on REITs, InvITs

Capital markets regulator Sebi on Thursday extended the timeline till March 15, for submission of public comments on a proposal pertaining to higher responsibility for sponsors of investment vehicles -- REITs and InvITs. The regulator had put in place a consultation paper on holding of sponsors in Real Estate Investment Trust (REITs) and Infrastructure Investment Trust (InvITs) on February 23 and sought public comments on the same by March 8. "It has been decided to extend the timeline for submission of comments to March 15, 2023," the Securities and Exchange Board of India (Sebi) said in a public notice. In its consultation paper, the regulator proposed changes to rules governing REITs and InvITs whereby sponsors will be required to own a certain percentage of units in these investment vehicles. The changes were proposed keeping in mind the interest of unit holders and the structural vulnerabilities associated with absence of a sponsor for REITs and InvITs. The watchdog suggested