Sebi issues rules for depositary receipts on REITs, InvITs units

Here are some key details:

The framework, proposed in August to attract more foreign capital to these sectors, was approved by the Securities and Exchange Board of India in September

Depositary receipts are foreign-currency instruments issued by a foreign institution against securities held with a domestic custodian, allowing them to be traded in overseas markets

SEBI said REITs and InvITs proposing to list in India and simultaneously issue depositary receipts must seek approval from both the Indian exchange as well as the international exchange involved

Any fresh issue of depositary receipts will require approval from at least 75% of unitholders

Units issued for depositary receipts cannot be priced lower than the price offered to Indian investors for a similar offering, the framework adds

Any fresh issue of depositary receipts on units of a privately placed InvIT can be subscribed to only by foreign institutional investors and corporate bodies, as per the framework for InvITs

REITs and InvITs listed in India already accept foreign investment, subject to government and central bank rules.