REITs, InvITs to be part of Nifty indices from September 30: NSE

Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) will now be included in the Nifty indices after the National Stock Exchange revised the criteria for their inclusion.

“All equity shares, REITs and InvITs, that are traded at the NSE are eligible for inclusion in the Nifty indices,” the stock exchange said in a note on August 23.   So far, REITs and InvITs were not specifically allowed to be part of Nifty indices.

“This would enable wider investor participation in REITs and consequently increased volumes, liquidity and better price discovery. REITs merit inclusion on Nifty indices, and this move will assist in widening investor participation for REITs on par with other equity options in India,” said Vinod Rohira, chief executive officer, Mindspace Business Parks REIT.

The changes shall become effective from September 30. 

In its semi-annual review of indices, the exchange has included Bank of Baroda, Cholamandalam Investment, Jindal Steel, PI Industries, and SAIL as part of Nifty Next 50. Abbott India, Alkem Laboratories, MRF, Petronet LNG, and United Breweries were excluded.

NSE has revised the criteria for Nifty Pharma, allowing top 20 stocks to be included in the index based on the six-month average free-float market cap. At present, the top 10 stocks based on a six-month average free-float market cap are selected.