Sebi issues rules for depositary receipts on REITs, InvITs units
Economic Times 2 hrs ago·2 Nov 2026, 2:47 pm
India's market regulator Sebi has introduced a new framework to make it easier for foreign investors to buy units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These trusts pool money from investors to finance large real estate or infrastructure projects. The new rules allow these trusts to issue depositary receipts, which are essentially certificates that represent ownership of the underlying units, on international exchanges. This move aims to attract more foreign capital to India's growing infrastructure and real estate sectors.
For investors, this development is significant as it opens up a new avenue for global capital to flow into these specific segments. It provides a more streamlined path for foreign entities to participate in the Indian market. The rules require that any new depositary receipt issuance must receive approval from both local and international exchanges. Furthermore, unitholders within the REIT or InvIT must give their consent, with a minimum of 75% approval needed for fresh offerings to proceed.
Investors should watch for the specific REITs and InvITs that announce plans to issue these depositary receipts. This could lead to increased liquidity and potentially higher valuations for these funds. However, investors should also pay attention to the voting requirements and the approval process for these offerings. The success of this framework will depend on how well it is implemented and the level of interest it generates from international investors.
Excerpt from Economic Times
India's market regulator has unveiled a new framework enabling foreign investors to invest in REITs and InvITs, aiming to boost foreign capital in these sectors. To issue depositary receipts, REITs and InvITs must gain approvals from both local and international exchanges, requiring a minimum of 75% consent from…Read the original at Economic Times
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- Category: Corporate Action.
- AI reads the tone as positive (potentially bullish) for the stock.
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