REITs; InvITs

July 1, 2021

SEBI has reduced the minimum application amount for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) to Rs 10,000-15,000 from Rs 55,000 at present, aligning them with equity initial public offerings (IPOs).

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Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are looked upon as attractive investment avenues with many entities looking at such structures to raise money from the capital markets.
While the underlying assets in REITs are income-generating commercial or residential properties, InvITs are backed by infrastructure projects. Currently, there are three REITs and two InvITs listed on the Indian stock exchanges.
Earlier, the minimum application size was around Rs 55,000 in REITs and InvITs, which has now been reduced to between Rs 10,000 and Rs 15,000.
The trading lot size has also been brought down to just one unit.
The lower application size and trading lot would help in attracting more retail investors to the segment.

Source : Indian Express