SEBI Permits REITs, InvITs to Issue Depository Receipts to Attract Foreign Investment.

New framework enables international listings through IFSC exchanges, subject to unitholder approval and stricter compliance norms. NEW DELHI: The Securities and Exchange Board of India (SEBI) has allowed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to issue Depository Receipts (DRs), aiming to attract greater foreign investment into India's real estate and infrastructure sectors. Under the new framework, REITs and InvITs can issue fresh units or facilitate the transfer of existing units held by investors for issuing DRs. These foreign currency-denominated instruments will be listed on designated international exchanges in the International Financial Services Centre (IFSC), including India International Exchange and NSE International Exchange. SEBI has prescribed eligibility criteria, pricing norms, issuance procedures and disclosure requirements. DR holders and their beneficial owners must be non-residents of India. Fresh DR issuances will require prior approval from unitholders, with at least 75% of votes cast in favour. The framework also mandates compliance with minimum public unitholding requirements and the appointment of merchant bankers to oversee regulatory compliance, strengthening transparency and investor protection.