SEBI has approved a proposal to allow Depository Receipts (DRs) against units of REITs and InvITs. The move is aimed at facilitating foreign investment and expanding access to Indian listed real estate and infrastructure assets.
The Securities and Exchange Board of India (SEBI) Board, at its meeting on 24 September 2026, approved a proposal to permit the issue of Depository Receipts (DRs) against units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Under the proposed framework, DRs would initially be permitted to be issued against units of REITs and InvITs listed in India. The framework is intended to facilitate foreign investment into these instruments.
The proposal provides for the DRs to be issued through a foreign depository, against units held by a domestic custodian. The DRs would represent an interest in the underlying REIT or InvIT units.
SEBI also approved provisions relating to the eligibility and operational framework for such issuances.
Other changes for REITs and InvITs
The SEBI Board also approved several ease-of-doing-business measures for REITs and InvITs.
These measures are aimed at simplifying certain regulatory requirements and improving operational flexibility for the sector.
The decisions form part of SEBI’s broader review of the regulatory framework governing REITs and InvITs.
How does it affect you?
The proposed framework could create another route for foreign investors to gain exposure to Indian REITs and InvITs through Depository Receipts.
The move could also broaden the channels through which foreign capital can participate in listed real estate and infrastructure investment trusts for the Indian market.
The detailed regulatory framework and implementation requirements will determine how the new DR mechanism operates.
