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Sebi moots addl proposals on REITS, InvITs issuing subordinate units
Sebi on Wednesday proposed limiting the number of subordinate units that can be issued by REITs and InvITs as well as ensuring uniformity in the granted rights of such units.
Sebi, in a consultation paper issued on Wednesday, has also made suggestions related to changes in terms and conditions of the subordinate units by the Real Estate Investment Trusts (REITs) or Infrastructure Investment Trusts (InvITs) post-issuance.
The consultation paper has additional proposals for the proposed framework for issuance of subordinate units by REITs and InvITs.
In December last year, Sebi had sought public comments on the framework for issuance of subordinate units by REITs and InvITs to sponsor, their associates and sponsor group.
The issuance of subordinate units is primarily intended to bridge the valuation gaps that may arise as a result of difference in the valuation of an asset perceived by the sponsor (asset transferor) and the REITs/ InvITs (and/or its investors/unitholders).
On the ..