(Reuters) – India markets regulator on Thursday proposed to increase mutual funds’ investment exposure in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
The Securities and Exchange Board of India (SEBI) has proposed raising equity funds’ net asset value in REITs and InvITs to 20% from 10%, while keeping the exposure of debt funds at 10%.
The plan will provide more investment avenues and further diversification to mutual funds’ schemes, as well as increase capital inflow into REITs and InvITs and broaden their market base and liquidity.
The SEBI is also seeking comments on treating REITs and InvITs as equity and their inclusion in equity indexes, adding that in some countries, these instruments are classified as equity instruments and are part of indexes.
(Reporting by Sethuraman NR; Editing by Sonia Cheema)
