Sebi proposes measures to promote ease of doing biz for Small, Medium REITs

To facilitate ease of doing business for Small and Medium REITs (SM REITs), markets regulator Sebi on Wednesday proposed standardising disclosures in scheme offer documents and simplifying public issue processes for such schemes.Additionally, the regulator proposed to align SM REIT (Real Estate Investment Trust) regulations with existing REIT norms.The proposals aim to simplify regulations, promote transparency, and improve ease of doing business for SM REITs.SM REITs were introduced in March 2024 to encourage smaller real estate investments and increase participation in the sector. These are similar to REITs but operate on a smaller scale with a minimum asset value of Rs 50 crore compared to Rs 500 crore for regular REITs.SM REITs can set up special purpose vehicles (SPVs) to manage assets and are required to invest 95 per cent of assets in completed, revenue-generating properties and distribute 95 per cent of net income to investors quarterly.In its consultation paper, Sebi