SEBI allows Indian REITs and InvITs to issue depository receipts
SEBI just rolled out a new policy that lets Indian REITs (real estate investment trusts) and publicly listed InvITs (infrastructure investment trusts) raise money from international investors through something called depository receipts.
In simple terms, this means these funds can now tap into global markets, making it easier to bring in overseas capital.
SEBI limits depository receipts to foreigners
With the updated rules, REITs and publicly listed InvITs can invest minority stakes within prescribed exposure limits in under-construction projects owned by third parties, something that wasn't as flexible before.
Plus, existing unitholders have more options to transfer their units abroad.
SEBI is also tweaking definitions (like recognition of remote common infrastructure as real estate) and updating some timelines for selling stakes.
The catch? Only foreign investors are allowed; Indian residents and non-resident Indians will not be eligible to hold the depository receipts.
This move is all about making India's real estate and infrastructure sectors more attractive (and accessible) to the world.