Daijiworld Media Network - Mumbai

Mumbai, Nov 22: In a move to enhance liquidity and investor participation in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), Sebi chairman Tuhin Kanta Pandey on Friday announced plans to engage stakeholders for inclusion of these instruments in market indices.

Speaking at the National Conclave on REITs and InvITs-2025, Pandey said the markets regulator is examining measures to ease doing business for REITs and InvITs. This includes broadening the pool of liquid mutual fund schemes in which these instruments can invest while maintaining investor protection. Sebi is also evaluating allowing private InvITs to invest in greenfield projects, subject to adequate safeguards.

Pandey highlighted ongoing coordination with the Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), and Employees Provident Fund Organisation (EPFO) to facilitate greater participation from entities under their purview. “Sebi will work with all stakeholders to facilitate the inclusion of REITs in indices,” he said.

The regulator is also engaging with institutional investors to deepen participation and working with the finance ministry and several state governments to accelerate public asset monetisation. Despite opportunities, Pandey admitted that the market for REITs and InvITs is still in a nascent stage, and investor awareness remains low among retail participants.

REITs, which own and operate real estate, provide investors a chance to access high-value properties and earn dividend income while growing capital over time. Pandey assured that Sebi will continue to provide the necessary framework and guardrails to ensure investor protection.