SEBI has issued a framework for issuing depository receipts backed by REIT units, enabling foreign listing and broader investor access to Indian real estate assets.
SEBI Issues Framework for Depository Receipts on REIT Units
SEBI has introduced a regulatory framework allowing the issuance of depository receipts (DRs) backed by units of Real Estate Investment Trusts (REITs), facilitating foreign listing of Indian REITs and improved access to offshore capital.
The framework prescribes eligibility criteria, IFSC listing requirements, pricing transparency, voting rights, and disclosure obligations for DR issuers. It aligns with SEBI’s strategy to globalise Indian capital market instruments and promote GIFT City as a financial hub.
Legal and structuring teams must now evaluate cross-border listing options for REITs, considering currency risk, tax implications, and investor rights enforcement under the DR regime. This opens new avenues for real estate financing and investor diversification.
