Sebi Reclassifies REITs as Equity to Enhance Market Participation
NEW DELHI: The market regulator, Sebi, announced on Friday that Real Estate Investment Trusts (REITs) will now be classified as equity-related instruments to encourage greater involvement from mutual funds and specialized investment funds (SIFs). Additionally, the classification of Infrastructure Investment Trusts (InvITs) will remain as hybrid instruments. Sebi stated in its circular, “Effective January 1, 2026, any investment by mutual funds and SIFs in REITs will be classified as an investment in equity-related instruments.” Investments in REITs from existing debt schemes and SIF strategies as of December 31, 2025, will be grandfathered. However, asset management companies (AMCs) are encouraged to…