SEBI Tightens Financial Disclosure Norms for InvITs and REITs

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  • Last Updated on 9 May, 2025

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SEBI InvIT REIT disclosure guidelines

Circular No. SEBI/HO/DDHS/DDHS-PoD-2/P/CIR/2025/63; Dated: 07.05.2025

The Securities and Exchange Board of India (SEBI) has issued revised guidelines aimed at enhancing transparency and consistency in financial disclosures made by Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). These revisions pertain to the presentation of financial information in offer documents or placement memoranda.

1. Key Highlights of the Revised Guidelines

  1. Mandatory Disclosure of Audited Financials – InvITs and REITs are now required to disclose audited financial statements for the last three completed financial years in their offer documents. Additionally, if applicable, financial information for a stub period (i.e., a period shorter than a full financial year preceding the offer) must also be provided in the same format.
  2. Timely Submission to Stock Exchanges – To ensure prompt and uniform dissemination of financial data, InvITs and REITs must submit their annual financial results to the stock exchanges within 60 days from the end of the financial year.
  3. Audit Requirement – The annual financial information disclosed by these entities must be duly audited by a statutory auditor in accordance with applicable accounting and regulatory standards. This requirement aims to improve the reliability and accuracy of disclosures made to investors and regulatory authorities.

2. Objective of the Amendment

The revised disclosure framework is intended to –

  • Strengthen investor confidence by ensuring greater transparency and comparability in financial reporting.
  • Align the disclosure practices of InvITs and REITs with those followed by other listed entities.
  • Facilitate informed investment decisions by making relevant and verified financial data readily accessible.

These changes are part of SEBI’s ongoing efforts to streamline regulatory compliance for investment vehicles and protect investor interests in the infrastructure and real estate sectors.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied