The Securities and Exchange Board of India (SEBI) has proposed to relax norms for real estate investment trusts (REITs) by allowing them to invest up to 20%, in under construction assets.
The regulator said that it would bring out a consultation paper proposing certain changes and providing clarification in the REIT Regulations.
The consultation paper is likely to propose the removal of norms restricting a special purpose vehicle (SPV) to invest in other SPVs holding the assets. It will also recommend a change in the number of sponsors.
Additionally, the paper is expected to suggest rationalization of compliance with respect to related party transactions (RPTs) requirements aligning minimum public holding requirement with Securities Contract Regulations Rules (SCRR).
The board has also approved changes that would make easier for foreign based fund manager to relocate to India as an eligible fund manager.