The Sebi board has now approved that the reference to approval by "Competent Authority" in the Takeover Regulations will be deleted.
On the proposal regarding REITs and InVITs, Sebi said the approved amendments to the norms include those relating to minimum allotment and trading lot, value of such allotments, among others.
The regulator had introduced REIT/InVIT laws in 2014, but it has been continuously amending its norms to make this market segment more attractive. Till date, three InVITs have issued and listed their units raising approximately Rs 10,000 crore, while one REIT is in the process of making a public offer.
Under the proposed changes, the minimum allotment by REITs/InVITs would need to be made in multiples of a lot, each consisting of 100 units, while value such allotment lot for InvITs would be Rs one lakh and for REITs Rs 50,000.
After listing, trading will be in multiple of one lot. The leverage limit for InvITs will be increased from existing 49 per cent to 70 per cent of InVIT assets.
The increase in the limit would be subject to certain additional disclosure and compliance requirements, such as the consolidated debt of the InvIT and the project debt having a credit rating of AAA.
The InvIT will need a minimum track record of 6 distributions on a continuous basis, post listing, in the years just preceding to the financial year in which the enhanced borrowings are proposed to be made.
Separate framework for privately placed unlisted InvITs, which provide sufficient flexibility to both issuers and investors, will be created, Sebi said.
For this, the minimum number of investors will be as determined by the issuer, including the maximum holding of units by a a single investor. The leverage would be determined by the issuer after consultation with investors.
The underlying assets can be completed, under construction or both, while the minimum investment by an investor can not be less than Rs1 crore.
The latest amendments are being made following representations from the industry and market participants, followed by a public consultation process.