SEBI Consultation Paper on Disclosures and Compliances by InvITs and REITs

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Apr 28, 2025

SEBI Consultation Paper on Disclosures and Compliances by InvITs and REITs

SEBI, on February 14, 2025, has issued a Consultation Paper for public comments (‘Consultation Paper’) proposing amendments to the Master Circular for Real Estate Investment Trusts (‘REIT’) and Master Circular for Infrastructure Investment Trusts (‘InvIT’) each dated May 15, 2024 (‘Master Circulars’) as follows:

i. aligning the disclosure requirements for financial statements and pro forma financial statements for InvITs and REITs with the requirements under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015;

ii. revising the: (a) format for disclosure of ‘Statement of Net Assets at Fair Value’; (b) framework for calculation of net distributable cash flows; and (c) timeline for submission of statement of deviation in the use of proceeds from the issuance of debt securities; and

iii. proposing: (a) disclosures in offer document for a follow-on offer; (b) the applicability of Schedule III of the Companies Act, 2013 in the preparation of financial statements; and (c) disclosure of net borrowings ratio and certain other financial ratios.

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