SEBI May Add REITs to Key Indices, Focus on Investor Safety

On 21 November 2025 (Friday), the Chairman, Tuhin Kanta Pandey, said in a conference in New Delhi, "The SEBI (Securities & Exchange Board of India) is looking into adding REITs (Real Estate Investment Trusts) to market indices in a careful way". The regulator will prioritize investor protection across all its reforms. Pandey further added that the goal of this regulator is to increase investments in REITs and InvITs (Infrastructure Investment Trusts), as the major indices currently include only the stocks of the listed companies.

Pandey also mentioned that the regulator is planning to increase the inclusion of REITs and InvITs in liquid mutual funds, as it is believed to boost liquidity and offer more diversified options to investors. He said that the governance and investor protection remain “non-negotiable". 

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The regulator has been making rules to improve transparency in the market. They are focusing on more explicit disclosure norms, monitoring market behavior and strengthening protections for investors. They are also working to increase communication in multiple languages for investor education materials and the efforts are already underway. This includes making disclosures more straightforward and improving systems for handling complaints.

What are REITs and InvITs?

Both REITs and InvITs collect money from investors and have a designated trustee, sponsor and manager. However, their priorities are different from each other. REITs invest mainly in completed, income-producing real estate properties that earn growth, while InvITs invest in infrastructure projects such as roads and power plants. REITs must have at least 80% of their assets in completed properties, with a maximum of 20% in properties under construction or related investments. For InvITs, it is mandatory to have at least 80% of the investment in completed, income-generating infrastructure assets.

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