REITs, publicly-listed InvITs may get to raise foreign capital via DRs

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Sebi has proposed introducing a regulatory framework that would permit the issuance of foreign currency-denominated depository receipts against units of REITs and publicly listed InvITs.

The markets regulator has excluded privately-listed InvITs from availing this facility.

At present, the units of REITs and InvITs are denominated in Indian rupees and are listed on local stock exchanges. A REIT and InvIT can invite subscription and allot units to foreign investors subject to guidelines specified by the Reserve Bank of India and the government.

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"A framework for issuance of DRs on units of REITs and InvITs will enable REITsand InvITs to issue DRs in permissible jurisdictions thereby providing an additional investment option for foreign investors. It will be beneficial for foreign investors as DRs allow trading in foreign currency on the permitted international exchanges. It will also help in attracting foreign capital in REITs and InvITs," Sebi said in a consultation paper.

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