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SEBI proposes depository receipts framework for REITs and listed InvITs Markets regulator SEBI on Tuesday proposed allowing issuance of Depository Receipts (DRs) against units of Real Estate Investment Trusts and publicly listed Infrastructure Investment Trusts to widen investment options for overseas investors and attract foreign capital. Depository Receipts are foreign currency-denominated instruments issued by a foreign depository in a permissible jurisdiction against securities deposited with a domestic custodian in India. Overseas trading avenue for foreign investors Under the proposed framework, Real Estate Investment Trusts (REITs) and publicly listed Infrastructure Investment Trusts (InvITs) would be permitted to issue DRs in permissible overseas jurisdictions, enabling foreign investors to trade such instruments in foreign currency on permitted international exchanges. However, SEBI has proposed keeping privately listed InvITs outside the ambit of the framework. In its consultation paper, SEBI said a framework for issuance of DRs on units of REITs and InvITs will enable them to issue DRs in permissible jurisdictions, thereby providing an additional investment option for foreign investors. It will be beneficial for foreign investors as DRs allow trading in foreign currency on the permitted international exchange(s). It will also help in attracting foreign capital in REITs and InvITs, SEBI said. Existing rules and regulatory gap At present, units of REITs and InvITs are denominated in Indian rupees and listed on recognised stock exchanges in India. Such trusts can invite subscriptions and allot units to foreign investors, subject to guidelines specified by the Reserve Bank of India (RBI) and the government. SEBI noted that units of REITs and InvITs qualify as permissible securities under the Depository Receipts Scheme 2014. Further, the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, permit persons residing outside India to invest in REIT and InvIT units. Consequently, the existing DR Scheme and foreign investment rules permit issuance of DRs against REIT and InvIT units. However, there is currently no enabling provision or corresponding framework under SEBI's REIT and InvIT regulations for such issuances. Proposed amendments and public consultation To address this gap, SEBI has proposed inserting enabling provisions in the REIT Regulations and InvIT Regulations to allow DRs to be issued against units of REITs and publicly offered InvITs, subject to compliance with the regulations and conditions specified by the regulator. The Securities and Exchange Board of India (SEBI) has sought public comments on the proposals by August 25. www.thehindubusinessline.com, dt. 05-08-2026

SEBI proposes depository receipts framework for REITs and listed InvITs

Markets regulator SEBI on Tuesday proposed allowing issuance of Depository Receipts (DRs) against units of Real Estate Investment Trusts and publicly listed Infrastructure Investment Trusts to widen investment options for overseas investors and attract foreign capital.

Depository Receipts are foreign currency-denominated instruments issued by a foreign depository in a permissible jurisdiction against securities deposited with a domestic custodian in India.

Overseas trading avenue for foreign investors

Under the proposed framework, Real Estate Investment Trusts (REITs) and publicly listed Infrastructure Investment Trusts (InvITs) would be permitted to issue DRs in permissible overseas jurisdictions, enabling foreign investors to trade such instruments in foreign currency on permitted international exchanges.

However, SEBI has proposed keeping privately listed InvITs outside the ambit of the framework.

In its consultation paper, SEBI said a framework for issuance of DRs on units of REITs and InvITs will enable them to issue DRs in permissible jurisdictions, thereby providing an additional investment option for foreign investors.

It will be beneficial for foreign investors as DRs allow trading in foreign currency on the permitted international exchange(s). It will also help in attracting foreign capital in REITs and InvITs, SEBI said.

Existing rules and regulatory gap

At present, units of REITs and InvITs are denominated in Indian rupees and listed on recognised stock exchanges in India. Such trusts can invite subscriptions and allot units to foreign investors, subject to guidelines specified by the Reserve Bank of India (RBI) and the government.

SEBI noted that units of REITs and InvITs qualify as permissible securities under the Depository Receipts Scheme 2014. Further, the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, permit persons residing outside India to invest in REIT and InvIT units.

Consequently, the existing DR Scheme and foreign investment rules permit issuance of DRs against REIT and InvIT units. However, there is currently no enabling provision or corresponding framework under SEBI's REIT and InvIT regulations for such issuances.

Proposed amendments and public consultation

To address this gap, SEBI has proposed inserting enabling provisions in the REIT Regulations and InvIT Regulations to allow DRs to be issued against units of REITs and publicly offered InvITs, subject to compliance with the regulations and conditions specified by the regulator.

The Securities and Exchange Board of India (SEBI) has sought public comments on the proposals by August 25.

www.thehindubusinessline.com, dt. 05-08-2026