The Sebi move is part of its attempts to attract small and mid-sized entities into the regulated and transparent segment of REITs 
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The Sebi move is part of its attempts to attract small and mid-sized entities into the regulated and transparent segment of REITs The Securities and Exchange Board of India (Sebi) has eased the norms for social stock exchanges and Real Estate Investment Trusts (REITs) to attract more participants into the arena and, at the same time, make more instruments available for trading for retail investors.
The board of the capital market watchdog, which met on Saturday, approved the reduction in minimum issue size public issuance of Zero Coupon Zero Principal Instruments (ZCZP) by not-for-profit entities from the current Rs 1 crore to Rs 50 lakh.
It further reduced the minimum application size in such offerings from Rs 2 lakh to Rs 10,000 to encourage "wider participation of subscribers including retail".
Meanwhile, the regulator has also approved amendments to SEBI (Real Estate
Investment Trusts) Regulations, 2014 "to create a regulatory framework for facilitation of SM (small and medium) REITs, with an asset value of at least Rs 50 crore vis-à-vis minimum asset value of Rs 500 crore for existing REITs".
The Sebi move is part of its attempts to attract small and mid-sized entities into the regulated and transparent segment of REITs, which could, in turn, attract more investors to the public markets.
Sebi chairperson Madhabi Puri Buch, while addressing the media, said that the move of bringing more players into the regulated REITs arena will benefit all stakeholders as brokers, investment advisors and analysts can analyse the products and recommend them while investors will have the confidence that is a grievance redressal mechanism in place.
Interestingly, the board of the capital market regulator deliberated on the matter of amending the delisting regulations as well but did not arrive at a consensus as it felt that more data analysis needed to be done before taking a decision.
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