SEBI introduces depository receipts backed by REIT units, enabling offshore listings via IFSC with defined eligibility and disclosure rules.
Depository Receipts on REIT Units Now Permitted
SEBI has issued a framework permitting the issuance of depository receipts (DRs) backed by units of Real Estate Investment Trusts (REITs), effective 2026. The move allows REITs to raise capital from overseas investors through listings at the International Financial Services Centres (IFSCs), primarily GIFT City.
The framework outlines eligibility criteria for sponsor REITs, pricing mechanisms, voting rights of DR holders, disclosure obligations, and compliance with IFSCA regulations. It mirrors existing DR structures for corporate shares, tailored for the unique governance of REITs.
Legal advisors must now structure cross-border capital raising vehicles with attention to conversion terms and investor rights. The initiative strengthens India’s position as a global financial hub by enhancing access to infrastructure investments.
