Indian REITs Association Media Statement Equity Classification of REIT
Indian REITs Association (IRA) welcomes SEBI’s progressive move to classify Real Estate Investment Trusts (REITs) as equity for the purpose of inclusion in market indices. This important step marks a significant milestone in strengthening the REIT ecosystem in India and aligns with global best practices where REITs are part of equity indices. This decision is a step forward that will contribute to enhancing the depth of REIT market and accelerating the growth of these instruments in India. By enabling this, SEBI has paved way for widening investor participation in these instruments and also improving liquidity.
Similar to the reduction in lot size, which SEBI enabled in July 2021, this reform shall also help foster greater market participation and position India as a progressive investment destination for institutional investment in yielding assets.
IRA also welcomes SEBI’s move to expanding the scope of “Strategic Investor” for Real Estate Investment Trusts (REITs) to facilitate wider investor participation.
The IRA commends SEBI for these forward-looking reforms and remains committed to working with all stakeholders to build a robust and vibrant REIT market in India. We now hope the stock exchanges make the necessary changes in the eligibility criteria of indices to enable REITs to be part of the eligible ones.
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