IFSCA prescribed regulatory framework for REITs and InvITs in IFSC

The International Financial Services Centres Authority (IFSCA), with an objective to develop the financial products and services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) has prescribed the regulatory framework for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in IFSC.

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Key-Points

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 (IFSC) have been permitted to invest in real estate assets and infrastructure projects respectively in IFSC, India and other foreign jurisdictions.

The listing of REITs and InvITs in IFSC shall be in accordance with the requirements of the stock exchanges in IFSC.

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 (GIFT IFSC).

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