SEBI's Proposed Reforms for REITs and InvITs: Enhancing Flexibility and Investor Protection
| Aspect | Details |
|---|---|
| Why in News | SEBI proposed reforms for REITs, InvITs, and SM REITs to enhance flexibility, governance, and investor protection. |
| Interest Rate Derivatives | Proposal to allow REITs, SM REITs, and InvITs to use interest rate derivatives like swaps for hedging against rate fluctuations. |
| Fixed Deposits in Leverage Calculations | Fixed deposits may be treated as cash equivalents in leverage calculations for REITs and InvITs. |
| Locked-in Units Transferability | Proposal to allow transfer of locked-in units among sponsors and their affiliates, similar to promoter rules in listed companies. |
| Quarterly Reporting Alignment | InvITs to report quarterly results based on standalone performance, aligning with REIT standards. |
| Nomination and Remuneration Committees (NRCs) | Recommendation for balanced composition of independent and non-executive directors in NRCs of REIT and InvIT managers. |
| Definition of Common Infrastructure | Expansion to include facilities like power plants and water systems serving multiple REIT assets. |
| Liquid Mutual Fund Investments | Proposal to allow REITs to invest in liquid mutual funds for cash flow management and diversification. |