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India Opens Trusts to Global Capital
5 Aug
Summary
- Indian trusts can now access foreign capital via depository receipts.
- This initiative broadens foreign investor access to India's market.
- Privately listed infrastructure trusts are excluded from this facility.
The Securities and Exchange Board of India (Sebi) has put forth a proposal to permit real estate investment trusts (REITs) and publicly listed infrastructure investment trusts (InvITs) to raise capital from international markets. This initiative is designed to enhance foreign investor participation and draw global capital into India's investment trust landscape.
The proposed framework would enable the issuance of foreign currency-denominated depository receipts against units of eligible REITs and InvITs. These depository receipts will allow for trading in foreign currencies on international exchanges, offering a new investment avenue for global investors.
Sebi has explicitly excluded privately-listed InvITs from this new facility. Currently, units of REITs and InvITs are denominated in Indian rupees and traded on local stock exchanges, with foreign investment subject to Reserve Bank of India and government guidelines.
