SEBI allows strategic players to invest up to 25 per cent in REITs, InvITs

February 4, 2018

The Securities and Exchange Board of India (SEBI) has further relaxed norms for investment requirements into real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) as public offerings by such trusts have failed to generate investor interest. SEBI allowed strategic investors such as international multilateral financial institutions and non-banking financial companies to invest up to 25 per cent of the total offer size in such trusts. The minimum investment is capped at 5 per cent besides having a 180-day (six-month) lock-in from the listing date on units subscribed by strategic investors. Recently, the market regulator also allowed such trusts to invest in at least a 50 per cent stake in holding companies subject to certain safeguards.