Securities and Exchange Board of India
By INSOL India - Editorial Team Posted On : October 29, 2020
SEBI, vide its notification dated September 16, 2020 and in exercise of powers conferred under section 11(1) of the SEBI Act, 1992, has permitted listing and trading of units of Infrastructure Investment Trusts (“InvITs”) and Real Estate Investment Trusts (“REITs”) on recognized stock exchanges in International Financial Services Centres (“IFSCs”).
Clause 7 of the SEBI (IFSC) Guidelines, 2015 specifies the types of securities in which dealing may be permitted by stock exchanges operating in an IFSC. Accordingly, units of InvITs and REITs meeting the following conditions are permitted to list on stock exchanges operating in IFSC:
(a) InvITs and REITs which are incorporated/settled in permissible jurisdictions, as may be notified by the Government of India from time to time pursuant to notification no. G.S.R. 669(E) dated September 18, 2019 in respect of sub-rule 1 of rule 9 of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005;
(b) InvITs and REITs regulated by the securities market regulator(s) in the permissible jurisdictions;
(c) InvITs and REITs listed on any of the specified international exchanges in the permissible jurisdiction.
The permissible jurisdictions and international exchanges includes (i) United States of America - NASDAQ, NYSE, (ii) Japan - Tokyo Stock Exchange, (iii) South Korea -Korea Exchange Inc, (iv) United Kingdom excluding British Overseas Territories -London Stock Exchange, (v) France - Euronext Paris, (vi) Germany - Frankfurt Stock Exchange, (vii) Canada - Toronto Stock Exchange
Clause 7 of the SEBI (IFSC) Guidelines, 2015 specifies the types of securities in which dealing may be permitted by stock exchanges operating in an IFSC. Accordingly, units of InvITs and REITs meeting the following conditions are permitted to list on stock exchanges operating in IFSC:
(a) InvITs and REITs which are incorporated/settled in permissible jurisdictions, as may be notified by the Government of India from time to time pursuant to notification no. G.S.R. 669(E) dated September 18, 2019 in respect of sub-rule 1 of rule 9 of Prevention of Money-Laundering (Maintenance of Records) Rules, 2005;
(b) InvITs and REITs regulated by the securities market regulator(s) in the permissible jurisdictions;
(c) InvITs and REITs listed on any of the specified international exchanges in the permissible jurisdiction.
The permissible jurisdictions and international exchanges includes (i) United States of America - NASDAQ, NYSE, (ii) Japan - Tokyo Stock Exchange, (iii) South Korea -Korea Exchange Inc, (iv) United Kingdom excluding British Overseas Territories -London Stock Exchange, (v) France - Euronext Paris, (vi) Germany - Frankfurt Stock Exchange, (vii) Canada - Toronto Stock Exchange