SEBI Reforms for REITs, InvITs and Merchant Bankers
Why in the news
SEBI approved easier rules for REITs and InvITs and relief for merchant bankers.
| Reform | Change |
|---|---|
| Related-party units | Not counted as public holding |
| HoldCo cash flows | Offset own negative distributable cash against SPV cash before payout |
| Reporting | Quarterly and valuation report timelines aligned with results |
| Private InvIT primary market | Minimum allotment from ₹1-25 crore to ₹25 lakh |
Merchant bankers
- December 2024 demand to separate non-SEBI activities was revoked.
- They may do activities of other FSRs, or fee-based, non-fund-based services, in one entity.
Exam angle
- Terms: HoldCo, SPV, FSR.