{"id":86433,"date":"2020-01-23T16:39:56","date_gmt":"2020-01-23T11:09:56","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=13137"},"modified":"2020-01-23T16:39:56","modified_gmt":"2020-01-23T11:09:56","slug":"sebi-puts-in-place-guidelines-for-listed-reit-invit-on-rights-issue","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sebi-puts-in-place-guidelines-for-listed-reit-invit-on-rights-issue\/","title":{"rendered":"Sebi puts in place guidelines for listed REIT, InvIT on rights issue"},"content":{"rendered":"\n<p><strong>News:<\/strong>The Securities and Exchange Board of India(SEBI) has announced guidelines pertaining to rights issue of units by listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>Key features of the guidelines:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The issuer will have to disclose objects of the issue, related-party transactions, valuation, financial details, review of credit rating and the grievance redressal mechanism in the placement document.<\/li><li>The investment manager on behalf of the REIT and InvIT in consultation with lead merchant banker(s) will decide the issue price before determining the record date.<\/li><li>The minimum subscription to be received in the rights issue should be 90% of the issue size through the letter of offer.<\/li><\/ul>\n\n\n\n<p><strong>About Real Estate Investment Trusts (REITs):&nbsp;<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>REITs are securities linked to real estate that can be traded on stock exchanges once they get listed<\/li><li>Under it, REITs sells units to investors.This money is invested in real estate projects to earn rental income.<\/li><li>The income is then distributed to unit holders.Besides regular income from rents and leases,gains from capital appreciation of real estate also form an income for the unit holders.<\/li><\/ul>\n\n\n\n<p><strong>About Infrastructure Investment trusts(InvITs):<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>InvITs are investment scheme similar to mutual funds.They allow investment from individuals and institutional investors in infrastructure projects to earn a portion of the income as return.<\/li><li>They can be considered as a modified version of REITs designed to suit the specific circumstances of the infrastructure sector.<\/li><li>They attract long term finance to invest in infrastructure projects such as roads or highways which take some time to generate steady cash flows.<\/li><\/ul>\n\n\n\n<p><strong>Benefits of REITs and InvITs:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Opportunity to invest in stable return-generating instruments with low risk to capital.<\/li><li>Decrease in the financing burden on banks by reducing exposure to real estate sector.<\/li><li>Increased financing for key sectors such as transportation and energy that will help propel the growth of the country<\/li><li>Creation of direct and indirect employment opportunities.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The Securities and Exchange Board of India(SEBI) has announced guidelines pertaining to rights issue of units by listed real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Facts: Key features of the guidelines: The issuer will have to disclose objects of the issue, related-party transactions, valuation, financial details, review of credit rating and the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/sebi-puts-in-place-guidelines-for-listed-reit-invit-on-rights-issue\/\">Continue reading <span class=\"screen-reader-text\">Sebi puts in place guidelines for listed REIT, InvIT on rights issue<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[3970,3273,3199],"class_list":["post-86433","post","type-post","status-publish","format-standard","hentry","category-economy","tag-invits","tag-reit","tag-sebi","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86433"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86433\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}