Markets regulator Sebi has tweaked regulations for REITs and InvITs regulations with respect to exit option for dissenting unit holders in various scenarios, including acquisition and change in sponsors. Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are emerging investment vehicles.
The exit option for dissenting unit holders would be available in case of an acquisition, change in sponsor, inducted sponsor or change in control of sponsor or inducted sponsor is triggered pursuant to an open offer. In such cases, the exit option price would be enhanced by an amount equal to a sum determined at the rate of 10 percent per annum for the period between the first notice date and second notice date, according to two separate circulars issued by Sebi on Tuesday.
The summary of activities pertaining to exit option/offer have to take place along the timelines prescribed by Sebi. The regulator has also given the definition of "relevant date" in such cases which would mean the date of public announcement made for the acquisition in terms of Substantial Acquisition of Shares and Takeover Regulations, 2011.