Now it is easier to invest in REITs and InvITs, SEBI changed the rules

Now it is easier to invest in REITs and InvITs, SEBI changed the rules

The number of ‘lots’ for trading has been revised to one unit. The decision is aimed at making these emerging investment products attractive to retail investors.

SEBI

Markets regulator SEBI has reduced the minimum application amount for investment in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) and revised the number of ‘lots’ for business to one unit. The decision is aimed at making these emerging investment products attractive to retail investors.

The Securities and Exchange Board of India (Sebi) in two separate notifications issued on July 30 said that the minimum application amount for investment for both REITs and InvITs has been made in the range of Rs 10,000 to Rs 15,000. It was earlier Rs 50,000 for REITs and Rs 1 lakh in case of InvITs.

One lot is one unit

SEBI also said that the turnover for REITs and InvITs has now been reduced to one lot of one unit. Allotment to any investor will be required to be done in multiples of one lot. Earlier, for initial listing, the ‘lot’ of turnover was of 100 units.

With this move of SEBI, retail investors will be attracted to these investment products and they will get an opportunity to get stable return on investment along with growth. Along with this, the liquidity position will be better and better price will be fixed. In addition, the regulator has fixed a minimum number of unit holders for non-listed InvITs.

Sebi said, apart from sponsors, related parties and its affiliates, the minimum number of unitholders in InvITs shall be 5 and they should collectively hold at least 25 per cent of the total units.

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