SEBI Opens Overseas Investment Route for Indian REITs and InvITs Through Depositary Receipts

Foreign investors could get another way to invest in India's real estate and infrastructure sectors following a new framework from the Securities and Exchange Board of India (SEBI), as per news reports.  

The regulator has issued detailed rules allowing REITs and InvITs to issue depositary receipts against their units for trading on selected overseas exchanges. 

The proposal was first introduced in August 2026 and received SEBI's approval in September. The latest framework sets out the conditions that trusts must meet before taking this route. 

Indian REITs and InvITs Can Access Overseas Exchanges 

Under the framework, REITs and InvITs planning to list in India while also issuing depositary receipts abroad will need approval from both the Indian stock exchange and the overseas exchange involved. 

Depositary receipts are issued by foreign institutions against securities held with a domestic custodian. They allow investors to trade in those instruments on overseas markets while the underlying securities remain held in India. 

SEBI Sets Conditions for Fresh Issues 

The regulator has also laid down rules around pricing and investor approval. Any fresh issue of depositary receipts will require the consent of at least 75% of unitholders. 

There is also a pricing condition. Units issued against depositary receipts cannot be priced below the price offered to Indian investors in a similar offering. 

Private InvIT Issues Have Investor Restrictions 

The framework makes a separate provision for privately placed InvITs. Fresh depositary receipts issued against their units can only be subscribed to by foreign institutional investors and corporate bodies. 

REITs and InvITs already accept foreign investment under existing government and central bank rules. The new framework adds an overseas exchange-based route for foreign investors to access these investment vehicles. 

Read More: Festive Demand Drives Growth for Indian Automakers in October 2026! 

Conclusion 

SEBI's framework gives Indian REITs and InvITs another route to reach overseas investors, subject to the prescribed approvals, pricing conditions and investor restrictions. 

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