SEBI pushes for REIT inclusion in equity indices

SEBI chairperson Tuhin Kanta Pandey said the regulator is working to bring REITs into major equity indices. Pandey was speaking at the National Conclave on REITs and InvITs held in New Delhi on Friday, 21 November 2025. He said the inclusion will follow an appropriate glide path and is aimed at improving liquidity and deepening market participation.

Pandey said REITs and InvITs must move from niche products to mainstream investment options. He noted that these vehicles now manage about Rs 9.25 trillion across listed assets. He said the market is still small compared with global peers and has significant room to grow.

Sebi is studying a proposal to expand the pool of liquid mutual fund schemes in which these vehicles can invest. It is also examining whether private InvITs should be allowed to invest in greenfield projects with adequate safeguards. These steps will be taken after consultations with stakeholders.

SEBI is working with IRDAI, PFRDA and EPFO to widen institutional participation. It is also easing rules to make these products more attractive for retail investors. Pandey said retail awareness remains low, with penetration below 1%. Sebi is working to make these products more attractive for retail investors.

Pandey said governance and disclosure standards will remain strict. He added that index inclusion will support long term capital formation and strengthen Indias infrastructure financing ecosystem.

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