By laksh5382 
Securities and Exchange Board of India has permitted real estate investment trusts and infrastructure investment trusts to invest in unlisted shares under certain conditions and also permitted inter-transfer of locked-in units between sponsor group entities.
In its board meeting on Wednesday, the markets regulator also allowed trusts to invest in interest rate derivatives for hedging.
SEBI said REITs and InvITs can invest only in unlisted shares of companies that provide asset management, maintenance and other relevant services to the assets in their portfolio.
Till now, units held by sponsors and sponsor groups of REITs and InvITs, including multiple sponsors, were subject to a lock-in period of up to three years, with no inter-transfer of such locked-in units between sponsors. There was no provision. Sponsoring Group.
Allowing transfer of such locked-in units within sponsoring group entities brings greater flexibility to the rules and aligns them with the rules governing inter-transfers among corporates.
Allowing InvITs to use interest rate derivatives for hedging helps them manage interest rate fluctuations, as infrastructure projects have long maturity periods and require extended financing periods. .
The regulator has also approved provisions for investment and borrowing by small and medium REITs, bringing them at par with traditional REITs.