GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

SEBI Issues Norms for Issuance of Debt Securities by REITs, Infrastructure Investment Trusts

For issuance of debt securities,"the REIT (Real Estate Investment Trusts) or InvIT (Infrastructure Investment Trusts) shall appoint one or more debenture trustee registered with Sebi," the regulator said in a circular.

PTI

Updated:April 13, 2018, 5:19 PM IST
facebookTwittergoogleskypewhatsapp
SEBI Issues Norms for Issuance of Debt Securities by REITs, Infrastructure Investment Trusts
File photo of SEBI building.
New Delhi: Market regulator Sebi on Friday released guidelines for issuance of debt securities by REITs and InvITs, wherein they need a registered debenture trustee, along with financial disclosure to the stock exchanges.

The regulator, in December, had allowed these trusts to raise funds by issuing debt securities in order to make them attractive to investors.

For issuance of debt securities,"the REIT (Real Estate Investment Trusts) or InvIT (Infrastructure Investment Trusts) shall appoint one or more debenture trustee registered with Sebi," the regulator said in a circular.

This will be applicable provided a trustee of the REIT (Real Estate Investment Trust) or InvIT (Infrastructure Investment Trusts) is not eligible to be appointed as debenture trustee to such issuance of debt securities, it added.

"Any secured debt securities issued by REITs/InvITs shall be secured by the creation of a charge on the assets of the REIT/InvIT or holding company or SPV (special purpose vehicle), having a value which is sufficient for the repayment of the amount of such debt securities and interest thereon," the circular said.

In addition to financial disclosures, Sebi said that such trusts -- which have listed their debt securities -- need to disclose the asset cover available, net worth, debt-equity ratio, debt service coverage ratio and interest service coverage ratio.

Modified opinions in audit reports, having a bearing on the interest payment or redemption or principal repayment capacity of such trusts, need to be "appropriately and adequately addressed" by the board of the manager while publishing the accounts.

Sebi has asked trusts to submit the half-yearly financial results to the stock exchanges along with a statement indicating material deviations, if any, in the use of proceeds of issue of debt securities from the objects stated in the offer document on a half-yearly basis.

The regulator had notified REITs and InvITs regulations in 2014, allowing setting up and listing of such trusts which are very popular in some advanced markets.

However, only two InvITs - IRB InvIT Fund and Indiagrid Trust - have got listed on stock exchanges so far and not a single REIT has been listed in the country.

Despite various earlier relaxations, listings have not taken place as they have failed to attract investors. PTI SP

Also Watch

Read full article
Most Active
Company Price Change %Gain
Reliance 1,012.50 -19.45 -1.88
HDFC 1,906.75 +47.85 +2.57
Sun Pharma 577.25 +22.75 +4.10
SBI 273.05 +4.40 +1.64
TCS 1,809.80 -9.55 -0.52
Company Price Change %Gain
Reliance 1,012.30 -20.05 -1.94
Larsen 1,295.50 +5.20 +0.40
Tata Steel 560.45 +2.25 +0.40
United Brewerie 1,273.50 -5.35 -0.42
Sun Pharma 576.30 +21.70 +3.91
Top Gainers
Company Price Change %Gain
Sun Pharma 577.25 +22.75 +4.10
Bajaj Finance 2,336.05 +78.60 +3.48
Bajaj Finserv 6,176.50 +184.95 +3.09
M&M 908.20 +24.60 +2.78
HDFC 1,906.75 +47.85 +2.57
Company Price Change %Gain
Sun Pharma 576.30 +21.70 +3.91
M&M 908.15 +24.55 +2.78
HDFC 1,902.40 +47.15 +2.54
Axis Bank 524.65 +11.40 +2.22
Bharti Airtel 374.60 +6.40 +1.74
Top Losers
Company Price Change %Gain
Reliance 1,012.50 -19.45 -1.88
HPCL 311.15 -4.05 -1.28
Coal India 264.85 -2.85 -1.06
Eicher Motors 29,140.65 -284.25 -0.97
UPL 640.20 -5.80 -0.90
Company Price Change %Gain
Reliance 1,012.30 -20.05 -1.94
Coal India 265.10 -2.65 -0.99
TCS 1,811.80 -8.05 -0.44
Wipro 257.95 -1.05 -0.41
Adani Ports 366.00 -0.85 -0.23

Live TV