SEBI has proposed a new framework enabling Depository Receipts issuance against REITs and publicly listed InvIT units, inviting comments until August 25, 2026. This initiative aims to enhance market accessibility for investors.
SEBI Proposes Depository Receipts Framework for REITs and InvITs
On August 6, 2026, the Securities and Exchange Board of India (SEBI) unveiled a proposal to allow Depository Receipts (DRs) against Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) that are publicly listed. Comments are requested from stakeholders by August 25, 2026, as part of the consultation process.
The introduction of a DR framework is intended to broaden investment avenues and attract more participants into the REIT and InvIT markets. The proposal seeks to streamline the process of issuing DRs, which can potentially enhance liquidity and provide greater flexibility for investors.
Investment vehicles such as REITs and InvITs have gained popularity in recent years, and this regulatory initiative reflects SEBI's commitment to fostering growth in these sectors. By facilitating a DR structure, SEBI aims to tap into a larger pool of investors who may prefer the DR format over direct investments.
Practitioners and market participants should assess the implications of these regulatory changes, including potential impacts on compliance, investor communication, and overall market dynamics. The establishment of a robust DR market could signal a significant development in the Indian securities landscape.
Citations
- SEBI Proposal (2026) SEBI Circular 2026-08-06
