SEBI introduces depository receipts (DRs) backed by REIT and InvIT units, enabling foreign investors to access Indian infrastructure and real estate assets via IFSC listings.
SEBI Issues DR Framework for REIT & InvIT Units
SEBI has notified a framework allowing the issuance of depository receipts (DRs) backed by units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The DRs will be listed and traded at the International Financial Services Centre (IFSC) in GIFT City, facilitating foreign investment while preserving domestic regulatory oversight.
The framework sets eligibility conditions, pricing guidelines, voting rights, disclosure requirements, and compliance obligations for issuers and depositories. Only listed REITs/InvITs meeting specified track records and asset quality benchmarks are eligible. DR holders will have rights proportional to underlying unit holders but may face restrictions on governance participation.
This development expands capital-raising avenues for Indian trusts and enhances market depth. For legal practitioners, it introduces new structuring options for cross-border investment and demands careful drafting of DR constitutive documents to align with both Indian and offshore regulations.
Citations
- SEBI (Depository Receipts) Guidelines, 2026
