SEBI to declare the norms for REITs and InvITs next month
SEBI chairman UK Sinha on Thursday mentioned that the market regulator Securities and Exchange Board of India (SEBI) will unveil the detailed guidelines on Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) next month.
SEBI has also taken steps to safeguard the interests of the shareholders. Sinha also stated that SEBI would also pursue aligning corporate governance guidelines with that of the Companies Act to see that the investors/shareholders are protected in a major way. Sinha, who was in Chennai to address the members of Madras Chambers of Commerce and Industry (MCCI) at its 178th AGM (Annual General Meeting) explained these things to the members present there.
The Union Cabinet passing the crucial Securities Laws (Amendment) Bill on Thursday has brought a lot of happiness to him and he hopes that the same will be passed in the Parliament session. SEBI will come out with detailed guidelines for both REITs and InvITs during the next month, which would certainly see a lot of activities on both real estate as well infrastructure development fronts in the country.
Sinha also mentioned that the Board will also come out with ESOP (Employee Stock Ownership Plan) guidelines which would enable ESOP trusts to buy shares in the secondary market but will not be allowed to sell the same.
Sinha mentioned that he norms will help the Infrastructure Investment Trusts to help providing suitable structure for financing/refinancing in on-going and other new infrastructure projects in a big way.
Source- The Financial Express
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