Sebi allows InvITs, REITs to invest in select unlisted shares

The Securities and Exchange Board of India (Sebi) has permitted real estate investment trusts and infrastructure investment trusts to invest in unlisted shares of companies that provide property management, maintenance, and other incidental services to the assets in their portfolio.Sebi has also allowed the inter-se transfer of locked-in units among sponsor group entities. Earlier they were subject to a lock-in period of three years, with no provision for inter-se transfer of such locked-in units among sponsors and sponsor groups.The capital markets regulator has also approved the provisions for investments and borrowings by small and medium REITs, bringing them closer to parity with traditional REITs.