Reits, InvITs, municipal bonds hold potential for next decade: Sebi chief

Madhabi Puri Buch also stated that Rs 250 SIP will soon be launched

Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), on Friday said that real estate investment trusts (Reits), infrastructure investment trusts (InvITs) and municipal bonds could match the fund raising in primary debt issuances in the coming decade.

 

Highlighting the significant jump in the fundraising, Buch said in the first nine months of FY25, capital formation had reached Rs 10.7 trillion. Of this, Rs 7.3 trillion was raised via primary debt.

 

“The potential for this green sliver (Reits, InvITs, and muni bonds) to grow over the next 10 years is so significant that it could not only match the fundraise of the debt market but has the potential to exceed that,” said Buch.

 

The Sebi chairperson estimated the overall fundraise from the capital markets, both from equities and debt, will surge to Rs 14.27 trillion in FY25. This would be a nearly 21 per cent jump year-on-year (Y-o-Y).

 

Speaking at a symposium organised by Sebi, NISM, and NSE, Buch added that Rs 250 systematic investment plans (SIPs) or bite size SIPs will soon be available to investors.

 

She said a SIP of Rs 250 could help increase the penetration of mutual funds in the country.

 

The Sebi chief further said that the regulator was working on reducing the time taken for approvals of mutual fund schemes, new initial public offerings, and other applications.