The Government of India has proposed amendments for enabling Foreign Portfolio Investments (FPIs) to subscribe to listed debt securities of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trust (InvITs).
It has amended the Securities Contracts (Regulation) Act, 1956 and Securities and Exchange Board of India Act, 1992 with consequential amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and The Recovery of Debts Due to Banks and Financial Institutions Act, 1993
As in the Budget speech 2021-22, it has been announced that “debt financing of InvITs and REITs by FPI will be enabled by making suitable amendments in the relevant legislations. This will further ease access of finance to InvITs and REITs by increasing funds for infrastructure and real estate sectors.”
Amendment has been proposed to confer the power to Pooled Investment Vehicles (defined to include AIFs, REITs, InvITs etc.) to borrow and issue debt securities. The necessary notifications would be issued by the concerned regulators after the Finance Bill is passed by the Parliament.