In a long-awaited move, sebi has approved the reclassification of real estate investment trusts (reits) as equity, While Retaining the ‘Hybrid’ Status of Infrastructure Investment Trusts (Invits). , Photo Credit: Francis Mascarenhas
Acceding to a long-standing demand of Real Estate Investments Trusts (Reits), The Securities and Exchange Board of India have approved their classification as right. However, it has retained the ‘hybrid’ classification for infrastructure investment trusts (invits).
Classifying reits as equity will facilitate mutual fund investments in them, while they can also be included in market indices.
Reits Association Hails Milestone Reform
“This important step marks a significant millestone in strengthening the reit ecosystem in India and aligns with global best practices where reits are part of right indices,” Said the Indian reits with the statue.
This decision is a step forward that will contribute to enhancing the depth of reit market and accelerating the growth of these instruments in India. And improvement liquidity, “It said.
Blackstone-Backed Knowledge Realty Trust’s Ceo Shirish Godbole Said, “This long-aspailed move brings regulatory clarity, simplifies fund flows, and aligns india with global practixes Estate far more attractive to both domestic and international investors. ” He added that green greater participation through equity indices and mutual funds would not unly improve liquidity but also reduce the cost of capital for developers.
Invits Retain Hybrid Tag for Stability, Liquidity
Sebi said that the reclassification takes into account the features of reit units as being more included equity. Regarding the retention of invits as hybrid, it stated, “Invits, on the other hand bey products primearily privately placed with more Stable Cash Flows and Having Lesseer LIQUIDITY, The Hybrid Classirses to be retained. “
It also pointed out that as a result of equity classification of reits, the existing investment limit application for both reits and invitces would be exclusively available for involved and benefit them.
Strategic Investor Scope expanded by sebi
In another Major Move, Sebi has expanded the scope of strategic investors in reits and invits, which will widen the investor base in such security.
Strategic Investors Will Include All Qualified Institutional Buyers, Including Retirement Funds, AIFS, AIFS, and State Industrial Development Corporations, Family Trusts, Ass Well as Middle-Rayer, Upper-layer, and top-layer non-banking finance companies registered with the reserve bank of India.
This will promote ease of doing business by enabling invits and reits to Attract Capital from more Investors Under The Strategic Investor Category, SEBI Said.
Published on September 12, 2025