India’s markets regulator SEBI is collaborating with insurance and pension regulators to boost participation of their regulated entities in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The move aims to deepen capital markets, diversify investment flows, and strengthen long-term funding for India’s real estate and infrastructure sectors.
In a significant policy development, the Securities and Exchange Board of India (SEBI) is working closely with insurance and pension regulators to encourage greater participation of their regulated entities in REITs and InvITs. SEBI Chairperson emphasized that expanding institutional involvement is critical to strengthening India’s capital markets and supporting long-term infrastructure growth.
Key highlights include:
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Collaborative effort: SEBI is coordinating with the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA) to align frameworks for participation.
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Market deepening: Enhanced involvement from insurers and pension funds will provide stable, long-term capital to REITs and InvITs, improving liquidity and investor confidence.
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Diversified investment flows: By channeling funds into real estate and infrastructure trusts, regulators aim to broaden investment opportunities beyond traditional equities and debt.
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Strategic impact: The initiative supports India’s infrastructure financing needs while offering institutional investors access to steady, yield-generating assets.
This coordinated regulatory push reflects India’s broader agenda of strengthening alternative investment vehicles, ensuring transparency, and attracting both domestic and global capital into critical growth sectors.
Sources: Reuters, Economic Times, Business Standard