SEBI lures investors by reducing lot size of REITs InvITs |
The securities and exchange board of India in a recent announcement on Thursday, proposed to reduce the lot size for trading instruments like real estate investment trusts and the infrastructure investment trusts. This move is seen as a bid to attract more investors in these trusts. Earlier, the Real Estate Investment Trusts lot size was 2,785 dollars which is proposed to be reduced to 209 dollars. Similarly, Infrastructure Investment Trusts lot size was 13,925 dollars which is now proposed to be reduced to 278.5 dollars. SEBI has also proposed to increase the leverage limits for Infrastructure investment Trusts from 49% to 70%. Real Estate investment trusts and Infrastructure investment Trusts are tradable instruments that are backed by real estate assets like commercial properties and infrastructure like roads & power projects, etc. The regulations were notified in the year 2014, but since then, the first Real Estate Investment Trusts issuance is yet to be listed whereas three Infrastructure Investment Trusts have garnered around 1.4 billion dollars. The new recommendations are in view that they may lure in more investors and make these instruments more popular.
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