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Pension funds investment options to expand once InvITs become reality

PFRDA has created a separate asset class for investment under InvITs and REITs

Press Trust of India  |  New Delhi 


managers will now have more investment options, with (InvITs) finally becoming a reality after two years and (REITs) in the offing.

Regulatory and Development Authority (PFRDA) has created a separate asset class for investment under which the funds can be invested into newly created trusts and

has issued a revised investment guidelines for (NPS) schemes (for private sector), which came into effect on May 8.

The revised guidelines come in the backdrop of two hitting capital market to raise funds.

are yet to make their debut despite a push from the government and Securities and Exchange Board of India (Sebi) as the property market is facing a multi-year slowdown.

Global investment firm Blackstone, along with its joint venture partner Embassy group, is making preparation to launch The other developers are also consolidating their rental assets so that they could consider listing their assets under REITs.

According to the investment guidelines for for the private sector, a separate scheme or asset class — 'Alternative Asset Class' or 'A'.

Besides this, the other assets class for investments are (G), Corporate Bonds (C) and Equity (E).

The guidelines said funds can be invested in units issued by REITS, InvITs, (AIF) and Basel III tier - 1 bonds.

The investment under the new category can only be in listed instruments or fresh issues that are proposed to be listed.

The had InvIT and REIT regulations in 2014, allowing setting up of and listing of such trusts, which are very popular in some advanced

However, the response to these instruments has been relatively sluggish and two hit the capital last week, while a REIT is yet to happen.

made its debut on bourses on May 18.

The IPO of to raise Rs 2,250 crore was oversubscribed 1.35 times on the last day of offer on Saturday.

First Published: Sun, May 21 2017. 14:09 IST