Financial Services Authority Prescribes Regulatory Framework For REITs, InvITs In IFSC
A pedestrian walks past Gujarat International Finance Tec-City Tower One, left, and GIFT Tower Two in Gujarat. (Photographer: Dhiraj Singh/Bloomberg)

Financial Services Authority Prescribes Regulatory Framework For REITs, InvITs In IFSC

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The International Financial Services Centres Authority on Wednesday prescribed the regulatory framework for Real Estate Investment Trusts and Infrastructure Investment Trusts in IFSC.

"IFSCA has permitted global participants i.e. REITs and InvITs incorporated in FATF compliant jurisdictions to list on the stock exchanges in GIFT IFSC. Additionally, InvITs have been permitted to raise funds through private placements also," an official statement said.

The REITs and InvITs registered in International Financial Services Centre have been permitted to invest in real estate assets and infrastructure projects respectively in IFSC, India and other foreign jurisdictions, which is in line with the framework provided in the global financial centres, it said.

Additionally, it said, the REITs and InvITs that are already listed in any of the permissible jurisdictions other than IFSC (currently U.S., Japan, South Korea, U.K. excluding British Overseas Territories, France, Germany, Canada and India) or India have been permitted to list and trade on the recognised stock exchanges in IFSC, subject to compliance with their respective laws of home jurisdiction.

The listing of REITs and InvITs in IFSC shall be in accordance with the requirements of the stock exchanges in IFSC, it said, adding, the entities in IFSC can participate and benefit from the growth of real estate and infrastructure sector in international jurisdictions.

The IFSCA was established on April 27 this year with head office in Gandhinagar with an objective to develop the financial products and services in the Gujarat International Finance Tec-City International Financial Services Centre.

In December 2019, Parliament passed a Bill to set up a unified authority for regulating all financial activities at the IFSCs in the country.

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