REITs, InvITs: Sebi seeks to widen investor base

IN A BID to widen the investor base of real estate trusts (REITs) and infrastructure trusts (InvITs) and improve inflows, the Securities and Exchange Board of India (Sebi) has proposed to allow foreign investors and qualified institutional buyers (QIBs) as strategic investors.

- NESIL STANEY

The concept of 'strategic investors' was introduced in the REIT and InvIT Regulations to enable investments prior to an offer of units. The intent behind such a category of investors was to instill confidence in the other investors. By bringing in QIBs under the issue of capital and disclosure requirements (ICDR) as strategic investor, Sebi wants to strengthen the 'trusts IPOs'.

Strategic investors get allocation before the opening of the issue.