REITs get equity status upgrade: What it means for investors
SEBI is giving Real Estate Investment Trusts (REITs) a fresh status upgrade—they'll count as equity instruments.
This means REITs will now be eligible for inclusion in equity indices, and mutual funds can treat their REIT investments like regular stocks.
Until now, REITs were lumped together with InvITs as hybrids, but this move brings Indian rules closer to what's done globally.
Institutional money could flow in
The Indian REITs Association is all for it, saying this change should help more people get involved in real estate investing and boost market liquidity—kind of like when lot sizes were reduced back in 2021.
With more mutual funds able to invest and index rules likely to update soon, India could see a lot more institutional money flowing into real estate and infrastructure assets.