Norms eased for fund raising by REITs, InvITs: 

Norms eased for fund raising by REITs, InvITs: 

Context:

The Securities and Exchange Board of India (SEBI) has relaxed the guidelines for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

What do REITs and InvITs do?

• REITs allow investors to invest in real estate
• InvITs allow one to invest in infrastructure projects.

Which guidelines have been relaxed by SEBI?

• SEBI has decided to allow REITs and InvITs to raise capital by issuing debt securities
• It has also given approval to the REITs to lend to an underlying holding company or a special purpose vehicle (SPV).
• SEBI has also allowed single-asset REITs on similar lines as InvITs
• The regulator has amended the definition of ‘valuer’ for both REITs and InvITs.
• This step is expected to broaden the scope of fundraising by REITs and InvITs