SEBI floats consultation paper on ease of doing business for REITs, InvITs
This story was originally published at 22:30 IST on 5 February 2026
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MUMBAI – The Securities and Exchange Board of India Thursday proposed ease of doing business measures for Real Estate Investment Trusts and Infrastructure Investment Trusts. The regulator plans to make it easier for InvITs to invest in special purpose vehicles, allow a wider use of borrowings, and ease rules for private InvITs. The regulator also proposed to ease rules for InvITs and REITs to invest in liquid mutual funds.
SEBI proposed that the definition of special purpose vehicle may be expanded to enable InvITs to continue to hold the SPV even after the concession agreement ends. It may ease rules for private InvITs to invest in pure greenfield projects but the investment will be capped at 10% of the InvIT's assets. This is similar to the already laid down regulation for public InvITs.
SEBI wants to ease rules related to the use of borrowings for InvITs. It plans to allow the board to decide how the InvIT will use its borrowings once they cross 49% of total assets. Currently, InvITs are only allowed to use the borrowings once they cross the 49% limit to invest in developing infrastructure projects.
The regulator also proposed allowing REITs and InvITs to invest in liquid mutual fund schemes with a credit risk value of 10 or above. Currently, these companies can only invest in liquid mutual fund schemes with a credit risk of 12 or above. These companies may also be allowed to invest in both class A-I and class B-I categories of funds. End
Reported by Gopika Balasubramanium and Anshul Choudhary
Edited by Ashish Shirke
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