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SEBI Weighs REIT Index Inclusion, Plans Wider Liquid-Fund Access for REITs and InvITs

SEBI pairs a drive for passive flows via potential index inclusion with strict investor-protection guardrails.

Overview

  • Chairman Tuhin Kanta Pandey said the regulator will engage stakeholders on adding REITs to domestic indices to boost liquidity, building on September’s step reclassifying REITs as equity for mutual funds.
  • SEBI is examining proposals to allow liquid mutual fund schemes to invest in REITs and InvITs to deepen markets and diversify fund portfolios.
  • The regulator is coordinating with IRDAI, PFRDA, EPFO, the finance ministry and state bodies to expand institutional participation and accelerate public-asset monetisation into REIT/InvIT structures.
  • SEBI is exploring whether private InvITs could take calibrated exposure to greenfield projects subject to adequate safeguards.
  • Pandey clarified there is no new regulatory framework planned for digital gold, directing investors to regulated options such as gold ETFs and tradable gold securities.