REITs, publicly-listed InvITs may get to raise foreign capital via DRs

ET BureauLast Updated: Aug 05, 2026, 05:46:00 AM IST

Synopsis

Sebi proposed allowing real estate and infrastructure trusts to raise foreign capital. This move aims to broaden foreign investor access to India's investment trust market. Depository receipts will enable trading in foreign currency on international exchanges. Privately listed infrastructure trusts will not be eligible for this new facility. The proposal seeks to attract more global capital into these investment vehicles.

Mumbai: The Securities and Exchange Board of India (Sebi) on Tuesday proposed allowing real estate investment trusts (REITs) and publicly-listed infrastructure investment trusts (InvITs) to raise overseas capital through depository receipts (DRs), a move aimed at broadening foreign investor access and attracting global capital to India's investment trust market.

Sebi has proposed introducing a regulatory framework that would permit the issuance of foreign currency-denominated depository receipts against units of REITs and publicly listed InvITs.

The markets regulator has excluded privately-listed InvITs from availing this facility.

At present, the units of REITs and InvITs are denominated in Indian rupees and are listed on local stock exchanges. A REIT and InvIT can invite subscription and allot units to foreign investors subject to guidelines specified by the Reserve Bank of India and the government.

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"A framework for issuance of DRs on units of REITs and InvITs will enable REITsand InvITs to issue DRs in permissible jurisdictions thereby providing an additional investment option for foreign investors. It will be beneficial for foreign investors as DRs allow trading in foreign currency on the permitted international exchanges. It will also help in attracting foreign capital in REITs and InvITs," Sebi said in a consultation paper.

It added that the existing Depository Receipts Scheme and the Foreign Exchange Management (Non-debt Instruments) Rules already allow issuance of DRs against eligible securities, including units of REITs and InvITs. However, the REIT and InvIT regulations currently lack an enabling provision and an operational framework governing such issuances.

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