The Securities and Exchange Board of India (SEBI) on August 03, 2023, issued a notification regarding Offer for Sale framework for sale of units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The following has been stated namely: -
• Reference is drawn to Notification No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/10 dated January 10, 2023, which specifies the Comprehensive Framework on Offer for Sale (OFS) of Shares through the Stock Exchange Mechanism.
• Para B of the said circular has been amended, this amendment would allow OFS for units of private listed InvITs.
• The amendment is as namely: -
“B. OFS Framework for sale of units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
1.0 OFS for sale of units of REITs and InvITs by sponsor(s) or sponsor group entities, and other unitholders are permitted only in units of listed REITs and listed InvITs. The OFS framework for REITs and InvITs shall be equivalent to the OFS framework prescribed in paragraph-A above for equity shares of listed companies. Provided that in case of OFS for listed InvITs, the trading lot shall be same as the trading lot prescribed for such InvITs in the secondary market interms of SEBI (Infrastructure Investment Trusts) Regulations, 2014.
Provided further that since there is no participation of retail investors in private listed InvITs, the provisions related to retail investors as specified in paragraph-A above shall not be applicable in case of OFS for such InvITs and the OFS shall remain open only for one day (i.e. T day).”
This circular shall come into force from August 03, 2023.
[Notification No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/134]
