Sebi for expanding MF investment scope for REITs

New Delhi: Market regulator Sebi proposed expanding the scope of investment in liquid mutual fund schemes by REITs and InvITs, as existing eligibility criteria limit investment options. Currently, such investments are restricted to liquid schemes with a high credit risk value and top risk classification.

The proposals are part of Sebi's effort to facilitate ease of doing business measures at Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Sebi said it is examining changes to provide greater investment flexibility for REITs and InvITs while maintaining appropriate prudential safeguards.

In its consultation paper, Sebi also proposed allowing InvITs to continue holding investments in special purpose vehicles (SPVs) even after the expiry or termination of concession agreements, acknowledging that such entities may need to remain operational to meet statutory, contractual, tax or litigation-related obligations.