SEBI cuts minimum application amount applicable on REITs and InvITs

Securities and Exchange Board of India

In a board meeting held on Tuesday, the Securities and Exchange Board of India (SEBI) has reduced the minimum application amount for the Real Estate Investment Trusts (REITs) Regulations, and Infrastructure Investment Trusts (InvITs) Regulations, 2014 to Rs 10,000 and Rs 15,000 while trading can be done in a lot of one unit.

Currently, the minimum investment amount in case of REITs is Rs 50,000 while in case of InVITs it is Rs 1 lakh.

“The Board considered and approved the amendments to SEBI (Real Estate Investment Trusts) Regulations, 2014 and SEBI (Infrastructure Investment Trusts) Regulations, 2014, for revision in minimum subscription and trading lot for publicly issued REITs and InvITs. The revised minimum application value shall be within the range of Rs 10,000-15,000 and the revised trading lot shall be of one unit,” said SEBI in a circular.

The alteration in the lot size will help the investors with a minimum sum to invest in REITs and InvITs. It will promote more retail participation from other segments other than institutional and high net worth individuals.

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