Quick News Bit

Sebi permits REITs, InvITs to issue commercial papers

0
Capital markets regulator Sebi on Thursday allowed emerging investment vehicles, Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT), to issue commercial papers. This is subject to certain conditions, the Securities and Exchange Board of India (Sebi) said in two separate circulars.

The move came after Reserve Bank Commercial Paper Directions last month indicated that InvIT and REIT having net worth of at least Rs 100 crore are eligible to issue commercial paper.

The capital markets regulator said that REITs and InvITs may issue listed commercial papers. This is subject to certain conditions, including, REITs and InvITs need to abide by the guidelines prescribed by Reserve Bank of India (RBI) for issuances of commercial papers and follow the conditions of listing norms prescribed by Sebi.

The issuance of listed CPs should be within the overall debt limit permitted under the REITs and InvITs rules, Sebi said.

Commercial Paper or CP in market parlance refers to a short-term debt instrument issued by companies to garner funds generally for a time period up to one year.

REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in global markets.

While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, InvITs comprise a portfolio of infrastructure assets such as highways, and power transmission assets.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment