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SEBI Eases REIT Investment Limits via Infrastructure Rule
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Securities and Exchange Board of Indiareal_estateinfrastructurefinancial_regulation

SEBI Eases REIT Investment Limits via Infrastructure Rule

November 6, 2026

2026 SEBI REIT amendments classify off-site common infrastructure as real estate, affecting investment limits and compliance.

REITs Can Now Include Off-Site Infrastructure

SEBI’s 2026 amendments to the REIT regulations now permit the classification of off-site common infrastructure—such as power substations or water treatment plants—as real estate assets. This redefinition expands the permissible investment scope for Real Estate Investment Trusts (REITs).

By including such infrastructure, REITs can diversify portfolios and support integrated township projects. The change impacts compliance with minimum distribution norms, asset concentration limits, and valuation methodologies. Off-site assets must be directly linked to the income-generating real estate.

Legal and valuation professionals must reassess asset categorization and reporting templates. The amendment enhances REITs' flexibility while requiring clearer disclosures on non-traditional real estate holdings.