Sebi allows REITs, InvITs to tap overseas investors through depository receipts
Sebi has established frameworks allowing real estate investment trusts and infrastructure investment trusts to issue foreign currency denominated depository receipts. This initiative enables them to access capital from overseas markets through int...
By ET Bureau |
IANS
The regulator said REITs and InvITs can issue fresh units or facilitate the transfer of existing units held by investors for issuing DRs.
Mumbai: The Securities and Exchange Board of India (Sebi) on Monday issued frameworks allowing real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) to issue depository receipts (DRs) backed by their units, enabling them to tap overseas investors through international exchanges in GIFT City.
The regulator said REITs and InvITs can issue fresh units or facilitate the transfer of existing units held by investors for issuing DRs.
The receipts, denominated in foreign currency, can be listed on India International Exchange and NSE International Exchange in the International Financial Services Centre (IFSC).
The move provides the trusts with an additional avenue to access foreign capital and gives overseas investors another route to gain exposure to India's real estate and infrastructure assets.
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Sebi said any fresh issue of DRs would require approval from unitholders, with at least 75% of the votes cast in favour.
The requirement will not apply where a trust undertakes an initial public offering alongside a simultaneous DR issuance and listing on an international exchange. Subsequent offerings within the overall limit approved by unitholders will also not require fresh approval, it said.
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The regulator has prescribed eligibility conditions for the trusts and existing unitholders participating in the exercise. The REIT or InvIT, its directors, promoters and partners, as well as unitholders transferring units, must not be debarred from accessing the capital markets, classified as wilful defaulters or designated as fugitive economic offenders.
DR holders and their beneficial owners cannot be residents of the country. The regulator said REIT and InvIT managers would have to appoint a merchant banker to oversee compliance with issuance requirements.
The regulator said REITs and InvITs can issue fresh units or facilitate the transfer of existing units held by investors for issuing DRs.
The receipts, denominated in foreign currency, can be listed on India International Exchange and NSE International Exchange in the International Financial Services Centre (IFSC).
The move provides the trusts with an additional avenue to access foreign capital and gives overseas investors another route to gain exposure to India's real estate and infrastructure assets.
Read more: Explained: Why gold investors should tone down expectations as yellow metal plunges to a 1-year low
Sebi said any fresh issue of DRs would require approval from unitholders, with at least 75% of the votes cast in favour.
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The requirement will not apply where a trust undertakes an initial public offering alongside a simultaneous DR issuance and listing on an international exchange. Subsequent offerings within the overall limit approved by unitholders will also not require fresh approval, it said.
Read more: Diwali 2026: 77 stocks knock down D-St bears to deliver multibagger returns of up to 4,700% in a year
The regulator has prescribed eligibility conditions for the trusts and existing unitholders participating in the exercise. The REIT or InvIT, its directors, promoters and partners, as well as unitholders transferring units, must not be debarred from accessing the capital markets, classified as wilful defaulters or designated as fugitive economic offenders.
DR holders and their beneficial owners cannot be residents of the country. The regulator said REIT and InvIT managers would have to appoint a merchant banker to oversee compliance with issuance requirements.
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