SEBI notifies norms for public issue of Real Estate Investment Trusts

INDORE, India - Dec. 20, 2016 - PRLog -- Securities & Exchange Board of India (SEBI) on Monday put in place detailed guidelines for public issuance of Real Estate Investment Trusts,  including allocation of units to institutional investors.
The SEBI, in its circular said, "the trusts, its promoters and directors, which have been barred from accessing the securities markets, or those who are in the 'wilful defaulter' list, would not make any public issue'.
In an issue made through the book building process, upto 75% would be allocated to institutional investors and 25% to other investors.
To facilitate growth of Real Estate Investment Trusts, SEBI last month notified revised and easier regulations for raising capital through this instrument, reports PTI.
SEBI had notified the Real Estate Investment Trust Regulations in 2014, allowing setting up of and listing of such trusts, which are very popular in some advanced markets.  However, not a single trust was set up  in India till now, as investors await further measures, including tax breaks, to make these instruments more attractive, report states.  Spelling out norms for Real Estate Investment Trust's public issue, SEBI said that such trusts can allocate up to 60%  of the portion available for allocation to institutional investors to anchor investors.

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