NEW DELHI: The Securities & Exchange Board of India (Sebi) has issued final guidelines for infrastructure investment trusts (Invits) and real estate investment trusts (Reits), instruments expected to help these sectors raise resources to meet a funds crunch. They could generate investment of as much as $20 billion, according to some experts.Final guidelines were issued after a meeting of the capital market regulator's board in New Delhi on Sunday that also eased registration requirements for stock brokers and clearing members. Finance minister Arun Jaitley also addressed the board on Sunday.Jaitley had, in his budget speech announced pass-through status for the purpose of taxation to these two instruments to make them attractive to investors. Trusts are like mutual funds that raise resources from many investors to be directly invested in realty or infrastructure projects.The pass-through status means that the return from investments through these instruments will be taxed only in the hands of investors and the trusts will not have to pay tax on income. Once the relevant changes in other regulations are made, overseas investors will be able to bring funds into India through these vehicles, reducing the need for bank funds for these sectors.Sebi has said Reits and Invits should have a starting asset value of at least Rs 500 crore and the initial offer has to be Rs 250 crore or more. Importantly, Reits will be allowed to invest only in commercial property. They have to be listed on a recognised stock exchange and would have to meet stringent disclosure norms.Trading lot will be Rs 1 lakh with minimum subscription size ofRs 2 lakh. For Invits, this will be Rs 5 lakh andRs 10 lakh, respectively. Reits will invest in commercial real estate through special purpose vehicles (SPVs) in which they must hold a controlling stake of more than 50 per cent.The SPV in turn must hold at least 80 per cent of its assets directly in properties and won't be allowed to invest in other SPVs. "This is a welcome move, especially coming within a month of the budget," said Neeraj Bansal, partner and head of real estate and construction, KPMG. "Expediting Reit and Invit norm notification will facilitate infusion of $15-20 billion in the sector, and an alternative to bank finances."Invits will allow infrastructure developers to monetise specific assets, helping them use proceeds for completing projects of theirs stalled for want of funds. "We expect this to be a positive move for capital markets. It could free up some liquidity for real estate and infrastructure players," said Bhairav Dalal, associate director, PwC.Sebi has also simplified registration for stock brokers and clearing members, who can now seek a unified registration for doing business on all stock exchanges and depositories in the country.