SEBI's New Plan: Indian Property, Infra Trusts to Tap Global Investors Directly

India's market regulator, SEBI, has just proposed a game-changing move: allowing Real Estate Investment Trusts (REITs) and publicly listed Infrastructure Investment Trusts (InvITs) to issue Depository Receipts (DRs) in eligible international markets. This fresh initiative, unveiled in a consultation paper on Tuesday, August 4, 2026, aims to unlock a new pathway for foreign investment into India's crucial real estate and infrastructure sectors by letting global investors trade these instruments in foreign currency. Public feedback on this proposal is invited until August 25, 2026. Currently, while foreign investors can put money into Indian REITs and InvITs, there wasn't a clear regulatory path within SEBI rules for these trusts to issue DRs, creating a 'regulatory gap' that hindered broader global participation. This new framework seeks to bridge that gap, making it much easier for international investors to buy into India's growth story without directly navigating local exchanges or currency conversions. The move is expected to significantly boost funding options for these trusts, which are vital for financing large-scale projects like roads, power plants, and commercial properties across India. If implemented after the public comment period, SEBI plans to release a separate circular detailing the operational framework, drawing from existing rules for Indian companies issuing DRs but adapted for the unique structure of investment trusts. This could mean a surge in foreign capital inflows, bringing more liquidity and a wider investor base for Indian REITs and InvITs. The only exclusion from this proposed framework remains privately listed InvITs, primarily due to their typically large investment sizes and specific investor restrictions.