SEBI REIT InvIT Consultation – ₹25 L Allotment and Investor Charter

SEBI Report 2; Dated: 02.05.2025

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing key regulatory amendments aimed at enhancing transparency, market efficiency, and investor protection in the Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) space.

1. Proposal to Align Minimum Allotment with Trading Lot Size

One of the key proposals in the paper is to align the minimum allotment lot in the primary market with the trading lot size in the secondary market for privately placed InvITs.

• SEBI has proposed revising the minimum allotment size to ₹25 lakh for all privately placed InvITs, thereby standardising the allotment structure and improving liquidity and market participation.

2. Introduction of Investor Charter

In a move to enhance investor awareness and protection, SEBI has also proposed the introduction of an Investor Charter for both REITs and InvITs.

• The charter would outline the rights, responsibilities, and service standards expected from the respective Trusts and their managers.
• This is part of SEBI’s broader initiative to promote transparent and accountable market conduct.

3. Stakeholder Feedback Invited

SEBI has invited public comments and suggestions on the proposed amendments detailed in the consultation paper. Stakeholders are encouraged to participate in the consultation process to help shape the final regulatory framework.

4. Implications

If implemented, these changes are expected to –

• Simplify investment structures in privately placed InvITs
• Improve market alignment between primary and secondary markets
• Strengthen investor confidence through structured disclosures and clear expectations

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