SEBI Introduced New Regulations for InvITs and REITs

Current Context: SEBI has indeed introduced new regulations aimed at boosting liquidity and easing business compliance for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).

• Here are some key changes:
• Reduced Trading Lot Size: The trading lot size for privately placed InvITs has been reduced from ₹1 crore to ₹25 lakh. This change is expected to increase investor participation and liquidity.
• Faster Distributions: SEBI has mandated that distributions to unitholders must be completed within five working days from the record date. This aims to bring efficiency to the distribution process.
• Flexibility in Meetings: REITs and InvITs can now call unitholders’ meetings with less than 21 days’ notice if consent is obtained electronically. Additionally, meetings can be attended via video conferencing, ensuring broader participation.
• Electronic Voting: SEBI emphasizes the use of electronic voting to facilitate decision-making, allowing unit holders to participate regardless of their location.
• These measures are part of SEBI’s ongoing efforts to make the investment environment more attractive and efficient for both domestic and international investors.

Question:

1 What is the new trading lot size for privately placed InvITs as per SEBI’s latest regulations?

• A) ₹1 crore
• B) ₹50 lakh
• C) ₹25 lakh
• D) ₹10 lakh

Answer: C) SEBI has reduced the trading lot size for privately placed InvITs from ₹1 crore to ₹25 lakh to increase investor participation and liquidity.