SEBI Plans Index Inclusion for REITs, InvITs to Enhance Investor Access and Liquidity

The Securities and Exchange Board of India (SEBI) has announced plans to include Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in market indices. This move is aimed at improving liquidity, increasing investor awareness, and enhancing institutional access, all critical for India's infrastructure financing strategy. 

SEBI Pushes Forward with Index Inclusion for REITs and InvITs 

SEBI Chairman Tuhin Kanta Pandey stated on November 21, 2025, that the regulator is working on a calibrated glide path to include REITs and InvITs in key indices. The inclusion strategy is intended to drive greater visibility and liquidity, critical for attracting institutional and retail investors into these capital market instruments. 

As of October 2025, REITs and InvITs had a combined assets under management (AUM) of ₹9.25 lakh crore spread across 24 listed InvITs and multiple REITs. Yet, retail participation remains at only 1%, indicating a need for deeper market access. 

Strategic Reforms to Support Infrastructure Financing 

Pandey emphasised that such inclusion is more than a technical adjustment — it supports India's long-term infrastructure growth. NabFiD projects ₹700 lakh crore investment needs by 2047, particularly for sectors like power and urban mobility. 

SEBI is also exploring policies to allow liquid mutual funds to invest in REITs and InvITs, reclassify REITs as equity, and ease investment thresholds to enhance accessibility. 

Encouraging Wider Market Participation 

To ensure broader investor participation, SEBI plans to involve large non-banking financial companies (NBFCs) as anchor investors. The regulator has also tied up with the finance ministry and state governments to accelerate the monetisation of public assets through InvITs, particularly from entities like NHAI. 

Read More: SEBI Caution Investors Over Unregulated Online Bond Trading Platforms! 

Enhancing Communication and Simplifying Capital Raising 

Recognising the importance of communication, Pandey highlighted the need for investor education in regional languages. Additionally, mechanisms like IPOs and rights issues for capital raising will continue to be simplified to draw more participation in these alternative investment platforms. 

Conclusion 

SEBI's step towards index inclusion of REITs and InvITs marks a progressive shift for India's infrastructure funding, aiming to deepen market participation and align capital market instruments with national growth priorities. 

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