India markets regulator proposes depository receipts against REITs, InvITs units
- REITs and InvITs listed in India accept foreign investment, subject to government and central bank regulations
India’s markets regulator on Tuesday proposed allowing depository receipts to be issued against units of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), in a move aimed at attracting more foreign capital to these sectors.
The Securities and Exchange Board of India proposed aligning the rules for depository receipts issued against REITs and InvITs with those applicable to equity depository receipts.
Depository receipts are foreign-currency-denominated instruments issued by a foreign institution against securities held with a domestic custodian, allowing investors to trade those securities in an overseas market.
India’s SEBI proposes allowing portfolio managers to invest overseas, in to-be-listed securities
REITs and InvITs listed in India already accept foreign investment, subject to government and central bank rules.
The proposed rules would give overseas investors an additional route to invest and trade REITs and InvITs units in foreign currency through depository receipts, SEBI said.
SEBI has sought public comments on the proposals by August 25.
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