Aug 4 (Reuters) – India’s markets regulator on Tuesday proposed allowing depository receipts to be issued against units of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), in a move aimed at attracting more foreign capital to these sectors.
Here are more details:
• The Securities and Exchange Board of India proposed aligning the rules for depository receipts issued against REITs and InvITs with those applicable to equity depository receipts.
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• Depository receipts are foreign-currency-denominated instruments issued by a foreign institution against securities held with a domestic custodian, allowing investors to trade those securities in an overseas market.
• REITs and InvITs listed in India already accept foreign investment, subject to government and central bank rules.
• The proposed rules would give overseas investors an additional route to invest and trade REITs and InvITs units in foreign currency through depository receipts, SEBI said.
• SEBI has sought public comments on the proposals by August 25.
(Reporting by Nishit Navin in Bengaluru; Editing by Eileen Soreng)
