SEBI to consider introducing micro-REITs

The Securities and Exchange Board of India (SEBI) is considering lowering the minimum amount of capital required to list a Real Estate Investment Trust (REIT) on the stock market. Currently REITs in India must have upwards of USD 60 million in assets to be eligible for listing. Although no official statement has been released by SEBI rumour are rife regarding this possibility. REITs were first introduced in India in 2019. We currently have four listed REITs on the NSE and BSE.

REITs were first introduced in India in a bid to infuse funds into a capital starved real estate sector. Post pandemic the real estate industry is experiencing an upward cycle, with commercial real estate delivering fantastic results. By allowing micro-REITs the government hopes to include more players in the game. Reducing minimum amounts will allow Trusts to hold up to just one asset or a less capital-intensive diversified portfolio. Some experts are sceptical about the new development as they feel it might dilute the quality available in the market and may not necessarily fuel growth.

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SEBI to consider introducing micro-REITs

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