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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
