New regulatory framework for small and medium REITs

What are REITs?

• REIT or Real Estate Investment Trust can be described as a company that owns and operates real estate properties to generate income. 
• They pool money from the investors and invest it in commercial real estate projects like workspaces, malls, etc.
• For instance, they lease properties and collect rent thereon. The rent thus collected is later distributed among shareholders as income and dividends.
• REITs operate similarly to shares, being listed on stock exchanges, enabling investors to buy or sell them at any time on the exchange. 
• Currently, India has only three REIT funds – Embassy Office Parks REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust.

Why in News?

• Securities & Exchange Board of India (SEBI) has approved amendments to the SEBI (Real Estate Investment Trusts) Regulations 2014 (REIT Regulations) to create a new regulatory framework for small and medium REITs.
• The key change is the reduction of the minimum asset value required for these trusts. Previously set at ₹500 crore, now it stands at ₹50 crore.
• This move aims to make real estate investments more accessible to a broader range of investors.