Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey announced in New Delhi that the regulator will consider including Real Estate Investment Trusts (REITs) in market indices.
He emphasised that investor protection and transparency will remain central to every reform.
Pandey explained that Sebi aims to deepen investments in REITs and Infrastructure Investment Trusts (InvITs). Moreover, he said the regulator will expand the pool of liquid mutual funds to include these instruments. This move will boost liquidity and provide investors with more diversified options. Until now, major indices have only comprised stocks of listed companies.
He stressed that governance and investor protection are “non-negotiable.” In addition, Sebi has already tightened disclosure norms, monitored market behaviour, and strengthened safeguards to ensure transparency. Efforts are also underway to improve multilingual communication in investor education material, simplify disclosures, and enhance grievance redressal systems.
REITs and InvITs pool investor funds under a trustee, sponsor, and manager. However, their focus differs. REITs primarily invest in completed, income-generating real estate projects. At least 80 per cent of assets must be in completed properties, while up to 20 per cent can be in under-construction projects or related securities. In contrast, InvITs focus on infrastructure such as roads and power plants. They mandate 80 per cent investment in completed, revenue-generating assets.
Pandey’s announcement signals Sebi’s intent to modernise India’s capital markets. Furthermore, it highlights the regulator’s commitment to integrating alternative investment vehicles while safeguarding investor interests.
