Sebi tweaks norms for REITs, InvITs on exit option for dissenting unit holders

Markets regulator Sebi has tweaked regulations for REITs and InvITs regulations with respect to exit option for dissenting unit holders in various scenarios, including acquisition and change in sponsors. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are emerging investment vehicles.

The exit option for dissenting unit holders would be available in case of an acquisition, change in sponsor, inducted sponsor or change in control of sponsor or inducted sponsor is triggered pursuant to an open offer. In such cases, the exit option price would be enhanced by an amount equal to a sum determined at the rate of 10 percent per annum for the period between the first notice date and second notice date, according to two separate circulars issued by Sebi on Tuesday.

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