REITs, InvITs to disclose investors’ complaints on websites, stock exchanges filings, Real Estate News, ET RealEstate

NEW DELHI: Market regulator Sebi said Thursday that all complaints received from REITs and InvITs for emerging investment vehicles must be disclosed on their websites and on the exchanges in a mandatory format. These trusts must ensure that adequate steps are taken to provide rapid resolution to investor complaints.

In separate circulars, Sebi said that all complaints, including SCORES, received by InvIT and REITs should be disclosed in the format on their respective websites and also with the exchange (s) on which their shares are listed within 21 days of notification Fiscal year closing must be submitted year or quarter end, as the case may be.

REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are relatively new investment vehicles in the Indian context, but extremely popular in global markets.

While a REIT comprises a portfolio of commercial real estate, a large part of which is already rented, InvITs comprise a portfolio of infrastructure objects such as highways, power transmission systems.

When these products were launched in Indian markets in 2014, the investment threshold was kept high as they were new products and investors were generally unaware of their risk / return profile.

Gradually, the instruments were made available to a broader group of investors by reducing the number of allotment and trading lots.

On Thursday, Sebi Chairman Ajay Tyagi said these products have been in the market since 2017 and more for the past two years.

“Of the total funds raised by REITs and InvITs to date of around Rs 900 billion, more than Rs. 620 billion have been raised after 2019-20,” he said.

In just about four years since the first InvIT was listed, the total assets of REITs and InvITs have grown to Rs.3.5 trillion, he added.