Sebi proposes higher mutual fund investment limits in Reits, InvITs

The Securities and Exchange Board of India (Sebi), in a consultation paper on Thursday, proposed to enhance investment limits for mutual funds (MFs) in Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InvITs).

 

The move aims to provide greater diversification opportunities for mutual fund schemes while increasing capital inflows and liquidity in these relatively new instruments.

 

Currently, Sebi regulations cap mutual fund investments in Reits and InvITs at 10 per cent of a scheme’s net asset value (NAV), with a maximum of 5 per cent in a single issuer.

 

Globally, Reits and InvITs are often classified as equities and