SEBI cuts listing time for REITs, InvITs by half to 6 days

To streamline the process of public issue of units of REIT and InvIT, markets regulator Securities and Exchange Board of India (SEBI) on April 28 reduced the time taken for the listing these investment vehicles to six working days from 12 days at present.

“As a part of the continuing endeavor to streamline the process of public issue of units of Real Estate Investment Trust (REIT), it has been decided to reduce the time taken for allotment and listing after the closure of issue to six working days as against the present requirement of within twelve working days,” according to a SEBI circular.

The new rule will apply to a public issue of units of Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), which opens on or after June 1, it said.

Also read: India REIT performances: Surviving the pandemic

“The provisions of this circular shall be applicable to a public issue of units of REIT under the SEBI (Real Estate Investment Trusts) Regulations, 2014 which opens on or after June 01, 2022. Stock Exchanges and Self Certified Syndicate Banks shall make required changes to implement the same from June 01, 2022,” the regulator added.

A REIT is unlike traditional property ownership. One can consider it as a special kind of mutual fund scheme, where money is pooled from various investors to invest in real estate or loans secured for real estate. Just like mutual funds, the assets are professionally managed by a designated manager.

Also read: Want a slice of real estate at affordable costs? Invest in REITs

InvITs comprise a portfolio of infrastructure assets, such as highways and power transmission assets.

As of March 2021, a total of 15 InvITs and four REITs were registered. Of these, six InvITs and three REITs were listed on the stock exchanges.