SEBI examines broader liquid fund access for REITs, InvITs

India’s markets regulator is reviewing a proposal to widen the liquid mutual fund schemes available to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), its chairperson said.

Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (SEBI), said the regulator is assessing options to “expand the pool of liquid mutual fund schemes, in which REITs and InvITs can invest, while safeguarding investor interests.”

Pandey said SEBI would also work to facilitate the inclusion of REITs in market indices.

The comments follow earlier regulatory proposals allowing foreign investors and qualified institutional buyers to participate as strategic investors in REITs and InvITs to support capital inflows into the segments.

SEBI is coordinating with the Insurance Regulatory and Development Authority of India, the Pension Fund Regulatory and Development Authority, and the Employees’ Provident Fund Organisation to enable wider participation.

Pandey added that SEBI is “exploring whether private InvITs too may invest in greenfield projects, with adequate safeguards,” according to the published speech.