SEBI's Strategic Expansion: New Horizons for REITs and InvITs

SEBI is considering reforms to broaden investment opportunities for REITs and InvITs, which currently face restrictions. Proposals include wider liquid mutual fund options and continued SPV holdings post-concession agreements. Amendments aim to enhance flexibility while maintaining safeguards, with public feedback invited until February 26.

The Securities and Exchange Board of India (SEBI) has proposed significant amendments to expand investment opportunities for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Currently, investment options are restricted due to existing eligibility criteria.

The proposed changes will allow REITs and InvITs more flexibility in investing in liquid mutual fund schemes. This comes as part of SEBI's broader plan to facilitate business operations for these entities while safeguarding prudential measures.

SEBI also suggests allowing InvITs to hold investments in Special Purpose Vehicles (SPVs) beyond the end of concession agreements, with conditions for reinvestment and enhanced disclosures. The public has been invited to comment on these proposals by February 26.

(With inputs from agencies.)