IFSCA prescribes regulatory framework for REITs, InvITs in IFSC

By: |
October 21, 2020 11:48 PM

"IFSCA has permitted global participants i.e. REITs and InvITs incorporated in FATF compliant jurisdictions to list on the stock exchanges in GIFT IFSC. Additionally, InvITs have been permitted to raise funds through private placements also," an official statement said.

In December 2019, Parliament passed a Bill to set up a unified authority for regulating all financial activities at the IFSCs in the country.

The International Financial Services Centres Authority (IFSCA) on Wednesday prescribed the regulatory framework for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in IFSC.

“IFSCA has permitted global participants i.e. REITs and InvITs incorporated in FATF compliant jurisdictions to list on the stock exchanges in GIFT IFSC. Additionally, InvITs have been permitted to raise funds through private placements also,” an official statement said.

The REITs and InvITs registered in International Financial Services Centre (IFSC) have been permitted to invest in real estate assets and infrastructure projects respectively in IFSC, India and other foreign jurisdictions, which is in line with the framework provided in the global financial centres, it said.

Additionally, it said, the REITs and InvITs that are already listed in any of the permissible jurisdictions other than IFSC (currently US, Japan, South Korea, UK excluding British Overseas Territories, France, Germany, Canada and India) or India have been permitted to list and trade on the recognised stock exchanges in IFSC, subject to compliance with their respective laws of home jurisdiction.

The listing of REITs and InvITs in IFSC shall be in accordance with the requirements of the stock exchanges in IFSC, it said, adding, the entities in IFSC can participate and benefit from the growth of real estate and infrastructure sector in international jurisdictions.

The IFSCA was established on April 27 this year with head office in Gandhinagar with an objective to develop the financial products and services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC).

In December 2019, Parliament passed a Bill to set up a unified authority for regulating all financial activities at the IFSCs in the country.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1LVB advised to write down Tier 2 bonds worth Rs 318 cr
2Maharashtra sugar mills owe Rs 351.5 cr in FRP dues to farmers
3High-priced Punjab seeds push potato production costs in West Bengal