Sebi forms advisory panel

Markets regulator Sebi has set up an advisory committee on hybrid securities, which will make recommendations for giving a fillip to the growth of such instruments, including measures focusing on ease of issuance and attracting domestic and global capital.The 20-member committee will be chaired by K V Kamath, Chairperson of National Bank for Financing Infrastructure and Development, an update with the Securities and Exchange Board of India (Sebi) showed.In addition, the committee comprises top level officials of infrastructure investment trusts (InvITs), real estate investment trusts (REITs), finance as well as legal experts and representatives of Sebi.REITs and InvITs are classified as hybrid securities and they are relatively new investment instruments in the Indian context but are extremely popular in global markets.

The committee has been given the task of advising Sebi on issues related to development and regulation of primary and secondary markets of hybrid securities in the country.Further, it will identify use case scenarios of hybrid securities in the context of the infrastructure financing needs of the Indian economy and make recommendations for developing instruments to meet the needs of the infrastructure sector. Also, the panel will make recommendations on infrastructure financing through capital markets.The panel will also be responsible for making suggestions to facilitate greater retail participation in hybrid securities while ensuring protection of interest of investors and making recommendations for developing engagements with various stakeholders including creating more awareness about hybrid securities amongst investors.

While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, InvITs comprise a portfolio of infrastructure assets, such as highways and power transmission assets.