Real Estate Investment Trusts (REITs) are investment vehicles that pool funds from investors to purchase, manage, and operate income-generating real estate assets. These trusts offer a way for individuals to invest in large-scale commercial properties without actually owning them directly.

Sponsors of REITs play a foundational role by contributing initial assets and often holding a significant portion of the trust’s units. Traditionally, a portion of these units was subject to a lock-in period to ensure long-term commitment and alignment of interests between sponsors and public investors.

Key Regulatory Change by SEBI

In a recent move, the Securities and Exchange Board of India (SEBI) has reduced the proportion of units that REIT sponsors are required to keep under a 3-year lock-in period. Now, only 15% of the preferential units allotted to sponsors must remain locked in for 3 years, down from the earlier 25%.

This regulatory amendment, which came into effect immediately, is aimed at simplifying the compliance process and promoting ease of doing business in the capital markets.

Advisory Committee’s Recommendation

The decision to reduce the lock-in requirement was based on the recommendation of the Hybrid Securities Advisory Committee (HySAC). The committee evaluates and advises SEBI on policy matters related to hybrid securities, including REITs.

By implementing this recommendation, SEBI signals a progressive approach towards balancing regulatory safeguards with operational flexibility for REIT sponsors.

Clarification on Unit Transfers Within Sponsors

Alongside the reduction in the lock-in percentage, SEBI has also clarified the rules regarding the transfer of units between sponsors.

• Units under lock-in can be transferred from one sponsor to another.

• Such transfers must occur within the sponsor group entities only.

• The transferee will be bound by the remainder of the original lock-in period and cannot transfer the units further until the lock-in period expires.

This clarification ensures that while flexibility is granted, the integrity of the lock-in period is maintained to uphold investor confidence.

Conclusion: Regulatory Streamlining in Focus

SEBI’s amendment marks a step forward in streamlining REIT regulations, with a focus on enhancing flexibility for sponsors while preserving necessary checks. Though reduced, the lock-in requirement continues to serve its purpose of ensuring sponsor commitment.

As REITs continue to gain traction among Indian investors, such measures reflect SEBI’s ongoing efforts to foster a robust and business-friendly regulatory environment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

As of March 31, 2024, Indian Railways holds approximately 4.90 lakh hectares of land across the country. This extensive land bank supports the nation’s railway infrastructure, including tracks, stations, production units, workshops, and terminals. A portion of this land is also licensed or leased out for various non-core activities and development initiatives.

Breakdown of Leased Railway Land

Out of the total land holdings, 8,812 hectares have been leased or licensed for multiple purposes. These include facilities related to passengers, cargo, and commercial development projects.

As of March 31, 2024, Indian Railways holds a total of 4,90,211 hectares of land, out of which 8,812 hectares have been leased or licensed for various purposes. Among the zones, Northeast Frontier Railway possesses the highest landholding at 48,469 hectares, with 1,214 hectares leased. The Northern Railway follows with 46,447 hectares, of which 474 hectares are leased. The South Central Railway holds 40,600 hectares, leasing 237 hectares, while the Western Railway owns 38,275 hectares with 620 hectares leased.

Significant leasing activity is seen in the East Central Railway, which has leased 2,437 hectares out of 33,644 hectares—the highest among all zones.

Land Leased for Various Purposes

Out of the total land, around 8,812 hectares have been leased or licensed for multiple purposes while retaining ownership with Indian Railways. These purposes include:

• Passenger amenities
  
• Cargo and freight facilities
  
• Commercial development
  
• Licensing to government departments and public utilities
  
• Educational institutions like Kendriya Vidyalayas

The leasing of land is conducted under the prevailing policy framework to ensure transparency and strategic utilisation.

Surplus Land Development Through RLDA

The surplus land, which is not immediately required for operational use, is handed over to the Rail Land Development Authority (RLDA). RLDA is responsible for commercially developing these parcels while ensuring that the ownership remains with Indian Railways.

Such development initiatives typically aim to:

• Monetise underutilised assets
  
• Create new sources of revenue for Indian Railways
  
• Enhance urban infrastructure and connectivity

This leasing model helps balance operational requirements with commercial potential, ensuring efficient land use.

Government Statement in Parliament

This information was provided by Shri Ashwini Vaishnaw, Union Minister of Railways, Information & Broadcasting, and Electronics & Information Technology, in a written reply to the Rajya Sabha. 

Conclusion

Indian Railways continues to be a key asset-heavy public enterprise in India. Its approach to leasing surplus land while retaining ownership demonstrates a strategic model of infrastructure management. By aligning operational requirements with commercial opportunities, Indian Railways not only serves public transport needs but also contributes to urban and economic development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

India’s defence sector has witnessed a remarkable transformation, recording ₹1.27 lakh crore in production during FY 2023–24. This surge has been powered by the Make in India initiative, which has prioritised domestic manufacturing, innovation, and self-reliance. Once heavily dependent on foreign imports, India is now increasingly turning to homegrown technologies and capabilities to meet its strategic and security needs.

This paradigm shift not only strengthens national security but also bolsters economic development by creating a thriving ecosystem for manufacturing and job creation. The leap in the defence budget from ₹2.53 lakh crore in FY 2013–14 to a projected ₹6.81 lakh crore in FY 2025–26 further underlines this commitment.

Key Defence Acquisitions and Approvals

Recent acquisitions and policy decisions highlight India’s focus on strengthening its defence arsenal through indigenous procurement:

Light Combat Helicopters (LCH) – Prachand

The Ministry of Defence has signed two contracts with Hindustan Aeronautics Limited (HAL) for 156 LCH Prachand helicopters worth ₹62,700 crore. These high-altitude helicopters—designed for operations above 5,000 metres—will serve both the Indian Air Force and the Indian Army. Notably, the LCH has over 65% indigenous content and involves collaboration with 250 domestic firms, mostly MSMEs, creating over 8,500 jobs.

Wet Leasing of Refuelling Aircraft

In a first, the Indian Air Force has entered a wet lease agreement with Metrea Management for a KC-135 Flight Refuelling Aircraft. This will aid in training pilots from the IAF and Indian Navy in air-to-air refuelling operations, with delivery expected within six months.

Advanced Towed Artillery Gun System (ATAGS)

The Cabinet Committee on Security has approved the procurement of 307 ATAGS and 327 gun towing vehicles under the IDDM category at a cost of ₹7,000 crore. Developed by DRDO in partnership with Bharat Forge and Tata Advanced Systems, ATAGS offers advanced targeting, automated loading, and a firing range exceeding 40 km.

Record Defence Contracts in FY 2024–25

In FY 2024–25, the Ministry of Defence signed an unprecedented 193 contracts, amounting to ₹2,09,050 crore—nearly double the previous record. Impressively, 177 of these contracts (92%) were awarded to domestic firms, accounting for ₹1,68,922 crore or 81% of the total contract value. This reflects a strong push towards indigenous procurement and the growth of local industries.

Surge in Domestic Defence Manufacturing

The value of India’s indigenous defence production has grown by 174% over the past decade—from ₹46,429 crore in FY 2014–15 to ₹1,27,434 crore in FY 2023–24. This milestone is attributed to comprehensive government efforts promoting self-reliance and innovation.

Noteworthy platforms developed in India include:

• Land Systems: Dhanush Artillery Gun, ATAGS, Arjun Main Battle Tank, Light Specialist Vehicles

• Air Systems: LCA Tejas, ALH Dhruv, LUH, Akash Missile System

• Naval Platforms: Indigenous aircraft carriers, destroyers, submarines, and offshore patrol vessels

• Surveillance & Communication: Weapon Locating Radar, 3D Tactical Control Radar, Software Defined Radios

Structural Shifts in the Defence Ecosystem

India’s defence manufacturing ecosystem has evolved rapidly:

• 65% of defence equipment is now produced domestically, a reversal from earlier reliance on imports.

• A robust industrial base includes 16 Defence Public Sector Undertakings (DPSUs), over 430 licensed firms, and approximately 16,000 MSMEs.

• The private sector contributes 21% of the total defence output, promoting competitiveness and innovation.

• India has set an ambitious ₹3 lakh crore defence production target by 2029, signalling its aspiration to become a leading global supplier.

India’s Defence Exports on the Rise

India’s push for defence exports has yielded impressive results. From ₹686 crore in FY 2013–14, exports have skyrocketed to ₹21,083 crore in FY 2023–24—a 30-fold increase over a decade. This demonstrates the growing confidence of international buyers in Indian-made defence systems and the country’s potential to be a significant player in the global arms market.

Conclusion

The Make in India initiative has successfully transformed India’s defence sector, enhancing self-sufficiency while opening up new avenues for global trade. With rising production figures, record-breaking contracts, and expanding exports, India is well on its way to becoming a defence manufacturing powerhouse.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The System for Pension Administration (Raksha), popularly known as SPARSH, is a flagship initiative under Digital India, launched in October 2020. It was conceptualised to overhaul the cumbersome, multi-agency defence pension disbursement system and replace it with a centralised, transparent, and efficient platform.

As of now, approximately 31 lakh of the total 32 lakh defence pensioners have been successfully onboarded to SPARSH, marking a significant milestone in digitising and streamlining pension delivery for ex-servicemen and defence civilians across the country.

Why SPARSH Was Needed

Under the previous Legacy System, the pension sanctioning and disbursement process was managed by three different agencies and over 45,000 public interfaces, including banks, post offices, state treasuries and even the Indian Embassy in Nepal.

This decentralised approach had several shortcomings:

• Delayed and incorrect pension disbursement
  
• Lack of transparency and visibility for pensioners
  
• Widows often receive only minimum fixed pensions
  
• Grievances largely unattended due to lack of technical knowledge and coordination

The fragmentation not only led to inefficiencies but also caused emotional and financial distress, particularly among vulnerable pensioners such as widows and elderly dependents.

SPARSH: A Unified and Transparent System

SPARSH brings both the sanctioning and disbursement of pensions onto a single digital platform. It ensures direct credit of pensions into the pensioners’ bank accounts, eliminating intermediaries and thereby reducing errors and delays.

Key features include:

• Real-time access to personal and pension details
  
• A grievance redressal mechanism
  
• Online facilities for data correction and status tracking
  
• Transparency in eligibility and revision process

Pensioners can now identify data mismatches—be it in Aadhaar, PAN, name, family details, or mobile number—and request corrections seamlessly.

Proactive Outreach for Pensioners

Recognising that many veterans live in remote areas and are not tech-savvy, the Defence Accounts Department (DAD) has launched various outreach initiatives to support the transition and ongoing use of SPARSH.

Raksha Pension Samadhan Ayojans (RPSAs)

Seven such events were organised across the country between January and December 2024 to address the concerns of veterans, especially in digitally inaccessible regions.

SPARSH Outreach Programmes

Over 90 outreach programmes were conducted by DAD during the same period, with representatives actively participating in Ex-Servicemen (ESM) Rallies and Veteran Meets organised by the Armed Forces.

SPARSH Helpline

A toll-free number (1800-180-5325) has been set up by the Principal Controller of Defence Accounts (Pensions), with trained staff having answered over 50 lakh calls since 2014.

Infrastructure and Last-Mile Support

To ensure no pensioner is left behind, an extensive support network has been put in place:

• 201 Defence Accounts Department offices

• Branches of 16 banks, including India Post Payments Bank (IPPB)

• Over 4.63 lakh Common Services Centres (CSCs)

These centres assist pensioners with tasks such as identification, grievance registration, casualty reporting, IT declarations, and resolving technical queries.

Tackling Data Quality Challenges

While migrating pensioners from the Legacy System to SPARSH, several inconsistencies in personal and pension data were discovered. These discrepancies stem from poor data maintenance by the previous Pension Disbursing Authorities (PDAs).

To address this, DAD is not only responding to grievances but also proactively updating data to ensure accurate and uninterrupted pension flow. This proactive data reconciliation process is being executed on a war footing.

Conclusion

SPARSH represents a significant leap in delivering timely, transparent, and accountable pension services to India’s defence community. By empowering pensioners with access to information and a clear grievance mechanism, the initiative is setting new benchmarks in public service delivery.

While challenges in data quality and outreach remain, the robust infrastructure and continuous engagement efforts suggest a promising future for a more inclusive and efficient pension system in India.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

The index options premium on the National Stock Exchange (NSE) has witnessed a substantial dip, falling by 29% over the last 5months to ₹44,427 crore as of March. This marks a 43% decline from the peak of ₹78,227 crore recorded in June 2023. The overall equity options premium also showed a downward trend, registering a 16% fall to ₹51,024 crore during the same period.

This shift reflects changing dynamics in the index derivatives space, possibly influenced by regulatory actions designed to address excessive speculation and market volatility.

Understanding Options Premium and Risk Exposure

In options trading, the premium paid by the buyer is the maximum potential loss they can incur if the trade goes against them. For the writer or seller of the index option, the premium received is the maximum profit that can be realised from the contract.

However, the risks are asymmetrical. While buyers have capped losses, the loss potential for writers, particularly those selling uncovered options, is generally considered unlimited. This imbalance underscores the need for robust risk management frameworks, especially in a segment that attracts significant retail participation.

Regulatory Measures to Rein in Frenzied Derivatives Activity

To address concerns over the growing intensity and risks in the index derivatives market, the market regulator introduced six key measures in November 2023. Of these, five have already been implemented. These include:

• Increased Contract Size: The notional value of index derivative contracts has been raised to ₹15–20 lakh from the previous ₹5–10 lakh.

• Weekly Expiry Restrictions: Each exchange is now permitted to host only one weekly expiry, reducing the proliferation of contracts.

• Upfront Premium Collection: Premiums are now collected upfront from buyers, promoting more prudent trading behaviour.

These changes were put forth by a SEBI-appointed expert working group and reviewed by the Secondary Market Advisory Committee (SMAC).

Data Highlights the Scale of Retail Losses

SEBI’s recent study adds further context to the regulatory crackdown. Between FY22 and FY24, aggregate losses among individual traders in the F&O segment amounted to over ₹1.8 lakh crore. A striking 93% of the more than one crore individual traders reported average losses of approximately ₹2 lakh per person, inclusive of transaction costs.

These statistics point to widespread challenges among retail participants, who often engage in complex strategies without adequate risk understanding or capital protection mechanisms.

Conclusion

The reduction in index options premiums and the decline in overall equity options activity appear to be early signals of a changing landscape in derivatives trading. While the long-term effects of the regulatory interventions are yet to unfold fully, the initial data suggests a cooling-off period in a market segment that has seen rapid growth and increasing retail participation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.