SEBI proposes EODB-aligned changes to REIT and InvIT rules, including 75% voting thresholds, sponsor exit rights, and public float norms.
SEBI Proposes EODB Reforms for REITs and InvITs
SEBI has proposed a package of reforms for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) aimed at improving governance, liquidity, and investor rights. Key proposals include raising the threshold for material decisions to require 75% unitholder approval and strengthening dissenting unitholder rights during asset sales or sponsor exits.
The consultation paper also recommends adjustments to public holding requirements and proposes common infrastructure for trading and settlement. These changes are aligned with the government’s Ease of Doing Business (EODB) agenda and aim to attract institutional and retail participation.
REIT and InvIT sponsors must now assess the impact on control structures, especially in cases of partial exits. The proposed framework may influence valuation models and transaction timelines in infrastructure and real estate M&A.
Citations
- SEBI (REITs and InvITs) Regulations, 2014 (proposed amendments, 2026)
