BENGALURU: The chairperson of India’s market regulator has announced plans to expand liquid mutual fund options for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to enhance their participation in the market.
“We are reviewing a proposal to increase the accessible liquid mutual fund schemes for REITs and InvITs, with a focus on protecting investor interests,” said Tuhin Kanta Pandey, chairman of the Securities and Exchange Board of India (SEBI).
Furthermore, Pandey noted that SEBI will work towards incorporating REITs into market indices, as outlined in his speech on the regulator’s website last Friday. This initiative follows SEBI’s proposal from several months ago that allowed foreign investors and qualified institutional buyers to enter as strategic investors in these trusts, aimed at increasing capital inflows into the sectors.
SEBI is collaborating with the Insurance Regulatory and Development Authority of India, the Pension Fund Regulatory and Development Authority, and the Employees’ Provident Fund Organisation to enhance participation in this initiative.
“We are also considering whether private InvITs should be permitted to invest in greenfield projects, with proper safeguards,” added Pandey, as detailed in his speech.
