Simplifying the Path for Small-Medium REITs: SEBI's New Proposals

SEBI has proposed new regulations to ease operations for Small-Medium REITs by standardizing disclosures and simplifying the public issue process. Aimed at promoting transparency, these changes include new disclosure requirements and aligning SM REITs with existing REIT norms. Public feedback is sought until November 13.

The Securities and Exchange Board of India (SEBI) has put forward a series of new proposals to streamline the regulatory framework for Small and Medium Real Estate Investment Trusts (SM REITs). Announced this Wednesday, the goal is to enhance transparency and simplify the process of public issues for these investment avenues.

SEBI's plans include aligning the standards for SM REITs with existing norms while introducing a clear structure for disclosures in scheme offer documents. The proposal outlines a bifurcated documentation process—Key Information of the Trust and Key Information of the Scheme—to ensure precise and distinct data presentation.

These proposed amendments, focusing on operational efficiency, mandate a percentage of asset investment in completed properties and the distribution of earnings to investors. The regulator has invited feedback from the public, with suggestions open until November 13.

(With inputs from agencies.)