SEBI Permits REITs and InvITs to Issue Depository Receipts for Foreign Investors

Key facts

• The Securities and Exchange Board of India (SEBI) allowed issuance of Depository Receipts (DRs) against units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to attract foreign capital, effective immediately.
• DRs are foreign currency-denominated instruments issued by a foreign depository against securities deposited with a domestic custodian in India, and will be listed on India International Exchange (India INX) and NSE International Exchange in the IFSC.
• REITs and InvITs can issue fresh units or facilitate transfer of existing units for issuing DRs, with fresh DR issues requiring prior unitholder approval of at least 75 per cent of votes cast.
• DR holders, including beneficial owners, cannot be residents of India, and eligibility conditions bar entities debarred from capital markets, wilful defaulters and fugitive economic offenders.
• The DR price cannot be lower than the price of the corresponding domestic offering, and disclosures made on international exchanges must be filed with Indian stock exchanges within 24 hours.
• The framework was proposed in August 2026 and approved by the SEBI board in September 2026.