SEBI Invites Public Comments on Draft Circular for Financial Disclosures and Compliance by REITs and InvITs
Securities and Exchange Board of India (SEBI) issued a draft circular for public comments, outlining proposed changes to the disclosure of financial information and continuous compliance requirements for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). This review, prompted by inputs from various stakeholders, including industry bodies like the Indian REITs Association and Bharat InvITs Association, aims to enhance transparency and streamline the regulatory process for these investment vehicles.
Dematerializing investments: relaxed timelines for AIFs
From July 1, 2025, all investments made by AIFs, whether directly in the investee company or acquired from another entity, will be required to be held in dematerialized form. This includes any new investments made post this date, ensuring uniformity in the treatment of securities and streamlining the entire investment process. Investments made by AIFs prior to July 1, 2025, are generally exempt from the requirement to hold investments in dematerialized form.
Revised timelines for issuance of Consolidated Account Statement
According to the guidelines, CAS was to be generated on a monthly basis, and Asset Management Companies (AMCs) and Mutual Fund Registrar and Transfer Agents (MF-RTAs) were required to share common PAN data with depositories within three days of the month-end. Depositories, in turn, had ten days to consolidate the information and dispatch the CAS.
