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SEBI permits REITs and InvITs to issue Commercial Papers

SEBI

SEBI

On 22-09-2022, the Securities and Exchange Board of India has issued circulars stating that InvITs/REITs may issue listed commercial papers subject to the following conditions:

  1. InvITs and REIT shall abide by the guidelines prescribed by Reserve Bank of India for issuances of commercial papers.
  2. InvITs and REIT shall abide by the conditions of listing norms prescribed by SEBI under SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 and circulars issued thereunder.
  3. The issuance of listed CPs shall be within the overall debt limit permitted under SEBI (Infrastructure Investment Trusts) Regulations, 2014.

On 10-08-2022, the Reserve Bank of India issued Commercial Paper Directions providing InvITs and REIT having net worth of INR 100 Crore or higher are eligible to issue commercial paper.

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