SEBI board approves amendments to REIT and InvIT Regulations

Taking another step towards refining the regulatory framework for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in India, the Securities and Exchange Board of India (SEBI) on 18 September, 2017, in its board meeting, decided on a few points that could go a long way in creating a successful platform for these vehicles in India. This tax insight provides a snapshot of these decisions.

It is expected that in due course, a notification will be issued amending the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 (REIT Regulations) and Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 (InvIT Regulations) to enact the decisions taken by the SEBI board.

In addition to the above, the SEBI board also decided to consult further with stakeholders on the proposal to allow REITs to invest at least 50% of equity share capital, or interest in special purpose vehicles (SPVs), or holding companies of the SPVs (Hold Cos), and similarly, allowing Hold Cos to invest at least 50% of the equity share capital, or interest in SPVs (as against the current 51%).

October 8th, 2017