Sebi proposes investment by REITs, InvITs in third party projects without controlling interest
Economic Times 4 hrs ago·6 Aug 2026, 1:22 pm
The Securities and Exchange Board of India (Sebi) has proposed a significant change to the investment rules for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The regulator is suggesting that these trusts be allowed to invest in third-party projects without holding a controlling interest. This move is intended to help these trusts diversify their portfolios beyond their own assets and secure a steady stream of rental income.
This development matters to investors because it aims to provide REITs and InvITs with more flexibility to grow. By allowing them to invest in under-construction projects, the regulator hopes to create a more robust pipeline of long-term, revenue-generating assets. This could potentially improve the financial performance and stability of these investment vehicles for retail investors.
Investors should watch for the finalisation of these guidelines and the specific implementation details. The ability to invest in third-party projects could lead to higher yields, but it also introduces new risks. It is important to understand how these changes will affect the specific REITs or InvITs in your portfolio before making any investment decisions.
Key takeaways
- Category: Economy.
- AI reads the tone as positive (potentially bullish) for the stock.
- Flagged as a high-impact, market-moving story.
Why it matters
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