SEBI allows REITs, InvITs to raise foreign funds through depository receipts
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI on Monday allowed REITs and InvITs to raise foreign funds through depository receipts.
- ✓This move gives these trusts a new way to access overseas capital.
- ✓Investors can now buy these instruments at the IFSC in GIFT City.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Securities and Exchange Board of India (SEBI) on Monday allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to raise funds from foreign investors through depository receipts (DRs), providing them with an additional route to access overseas capital.
Under two separate circulars, SEBI has specified the framework for issuing DRs against units of REITs and InvITs and listing them on exchanges at the International Financial Services Centre (IFSC) in GIFT City, which are India International Exchange (India INX) and NSE International Exchange.
What are DRs
DRs are foreign currency-denominated instruments issued by a foreign depository against underlying securities held with a domestic custodian. The framework will allow foreign investors, including non-resident Indians (NRIs), to invest in Indian REITs and InvITs without directly purchasing their units on domestic exchanges.
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