Amendments to the InvIT and REIT Regulations

SEBI has, by way of two Circulars both dated June 16, 2020, amended the SEBI (Infrastructure Investment Trusts) Regulations, 2014 (‘InvIT Regulations’) and the SEBI (Real Estate Investment Trusts) Regulations, 2014. Some of the key amendments are as follows:

i.    provisions for de-classification of the status of a sponsor of Infrastructure Investment Trusts (‘InvITs’) and Real Estate Investment Trusts (‘REITs’) have been introduced, whose units have been listed on the stock exchanges for a period of 3 years, subject to compliance with certain conditions and the approval of unit holders; and

ii.   in case of change or change in control of the sponsor or the inducted sponsor of the InvIT or REIT, approval from 75% of the unit holders by value excluding the value of units held by parties related to the transaction has to be obtained. If such approval is not granted, the inducted sponsor or sponsor, as applicable have to provide the dissenting unit holders an option to exit by buying their units.

Published In:Inter Alia - Quarterly Edition - June 2020 [ English Chinese japanese ]
Date: June 30, 2020