Trusts (Reit’s) as equity, paving of the road for a higher participation of investment funds. The supervisor also retained the ‘hybrid’ classification for invitations with a view to investments by MFS and specialized investment funds.
The decision was made in a SEBI board meeting that was held today. The meeting was chaired by chairman Tuhin Kanta Pandey, his third since it took over as the chef in March.
The reclassification was proposed, given the characteristics of Reit’s that are more inclined to fairness and are relatively more fluid while they close it on the global best practices.
Investing, on the other hand, are products that are mainly placed privately with more stable cash flows and have less liquidity and therefore the hybrid classification was proposed to be retained.
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After the reclassification of Reit’s, investments by investment funds will be considered within the limit of the investment allocation for stock instruments and they are also eligible for inclusion in stock indices, said Sebi Release, adding that improved investments would make it possible to make investment funds in Reit’s.
In addition, as a result of equity classification of Reit’s, the existing investment limit will now apply for both Reit’s and Investing now
Be only available for Invits, so that the growth in this segment is also facilitated.
The move came after feedback received in public consultation in April 2025 and later deliberations with MFAC, concerning industrial associations and stakeholders.
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Indian Reits Association Commentaard on development and welcomed the decision that it called a “progressive move”. “This important step marks an important milestone in strengthening the reit ecosystem in India and comes in accordance with global best practices where Reit’s are part of its own power indices. This decision is a step forward that contributes to improving the depth of the Reit market and accelerating the growth of these instruments.
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