The Securities and Exchange Board of India (SEBI) on August 06, 2026, issued Consultation Paper on Measures towards Ease of Doing Business for REIT and InvITs.
The proposals are based on recommendations from industry bodies such as the Indian REITs Association (IRA), Bharat InvITs Association (BIA), and the Hybrid Securities Advisory Committee (HYSAC), with the objective of improving operational flexibility and market efficiency.
One of the key proposals includes allowing REITs and InvITs to invest in third-party projects without requiring a controlling interest, thereby increasing investment opportunities and diversification. The paper also suggests revising the method for calculating unitholder approval thresholds, aiming to simplify decision-making processes and reduce procedural complexities in key matters.
Further, SEBI has proposed a review of the exit offer framework in case of change in sponsor, ensuring better protection and clarity for investors. Another notable proposal is the recognition of remote common infrastructure as real estate for REITs, which would broaden the scope of eligible assets and improve asset utilization within the REIT structure.
Additionally, the paper recommends reducing the cooling-off period for offer for sale (OFS) in privately listed InvITs, thereby improving liquidity and flexibility for stakeholders. Overall, these measures are intended to streamline regulatory requirements, enhance investor confidence, and support the growth and attractiveness of REITs and InvITs in India’s capital markets.
