SEBI Eases Path for Small and Medium REITs with New Disclosure Norms

The Securities and Exchange Board of India (SEBI) has streamlined disclosure norms for Small and Medium Real Estate Investment Trusts (SM REITs), aimed at easing business processes. New rules require standardized documentations and modified public issue procedures, enhancing transparency and operational efficiency in the SM REIT sector.

The Securities and Exchange Board of India (SEBI) has introduced significant changes to streamline the operations of Small and Medium Real Estate Investment Trusts (SM REITs). The new regulations are designed to increase transparency and facilitate ease of doing business for these entities.

SEBI's latest notification splits the scheme offer document into two distinct parts: Key Information of the Trust (KIT), focusing on broad structural details, and Key Information of the Scheme (KIS), addressing specific scheme features. The unified process requirements are set to benefit investors by providing clearer insights into the trust's assets and operations.

Furthermore, the new guidelines demand regular updates and transparent disclosures, including biannual KIT updates. The rules also extend to public issue procedures, mandating minimum subscription thresholds tied to leverage usage by SM REITs. SEBI continues to refine these rules to bolster investor confidence in smaller-scale real estate ventures.

(With inputs from agencies.)