Putting in place a few more disclosure norms for real estate investment trusts (REITs), Sebi on Thursday asked such entities to inform stock exchanges about actual utilisation of the funds raised. REITs will also have to provide justifications for the fees paid to investment and project managers as also share details about the methodology for computation, Sebi said in a circular.
The Trusts will have to make financial disclosures on half-yearly and annual basis as well as unit holding pattern. Furthermore, they would have to ensure that adequate steps are taken for expeditious redressal of investor complaints.
The Securities and Exchange Board of India (Sebi) last week issued disclosure norms that need to be followed by REITs while filing the offer documents and a set of new norms have been added in the latest round on Thursday.
The regulator, earlier this month, had issued detailed norms for public issuance of REITs, including allocation of units to institutional investors. To facilitate growth of REITs, Sebi last month notified revised and easier regulations for raising capital through this instrument.
Sebi had notified the REIT Regulations in 2014, allowing setting up of and listing of such trusts, which are very popular in some advanced markets. However, not a single trust has been set up in India as of now, as investors await further measures, including tax breaks, to make these instruments more attractive.
REITs will have to submit a statement “indicating deviations, if any, in the use of proceeds from the objects stated in the offer document/placement memorandum or explanatory statement to the notice for general meeting, as applicable,” to exchange on a quarterly basis for any private issue, public issue, rights issue and preferential issue.
RBI okays interestrate options trade
In a bid to further develop India's debt markets, the Reserve Bank on Thursday said trading of interest rate options will be permitted from January 31, 2017. Eligible market participants are permitted to take positions in 'Interest Rate Options' for their own balance sheet management and for market making purposes, the central bank said in a notification.
Participants, who are eligible as market makers are, however, advised to ensure that appropriate infrastructure and risk management systems are in place, it added. Interest Rate Options will be be effective from January 31, 2017 on exchanges authorised by Sebi as well as in the Over-the-Counter (OTC) market.