SEBI notification specifications listed real estate investment trusts, InvITs

India Securities and Exchange Commission (Sebi) last Friday notified specification listed real estate investment trust (REIT) and infrastructure investment trusts (InvITs), which will help attract a transparent manner more money into real estate and infrastructure industries.

Real estate investment trusts and InvITs, regulate both business trust structure in August approved the capital market regulator, will get tax breaks.

For these two trust funds, the minimum initial issue size should be 25 billion rupees in the public float of at least 25 percent, according to Sebi. Meanwhile, the basic minimum to get listed assets of these trusts is Rs 500 crore.

In order to ensure transparency, these trusts will be strictly regulated and disclosure of related party transactions.

In two separate trust funds, but the wording of similar regulations, capital market regulator said that all related party transactions should comply with the relevant accounting standards "keep away."

Real estate investment trusts and InvITs must invest either directly or through a special purpose company (special purpose company). If the PPP project, the money can only be put through a special purpose company.

In the case of real estate investment trusts, the minimum should be 25% held by the public, while the total number of units outstanding at any time and the number of unitholders - who are part of the public - should be 200.

Meanwhile according to IPO and subsequent public offer (FPO), real estate investment trusts may not accept the applicant subscribed amount less than two hundred thousand rupees, according to specifications.

SEBI has said that at least 80% of real estate investment trusts asset value of the fund should be invested in the completion and rental properties generated.

REITs invest in vacant land or agricultural land, or mortgage than the mortgage-backed securities and other prohibited.