‘Our REITs will be in Asia’s top 3 in a few years’

The Securities and Exchange Board of India's (Sebi's) goal is to ensure optimal regulation that promotes ease of doing business while maintaining robust risk management, its Chairman Tuhin Kanta Pandey said. With a proper blend of experience and technology, Sebi can be a much smarter regulator, he tells Prasanta Sahu. Excerpts:

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Recently, Real Estate Investment Trusts (REITs) has been classified as equity by Sebi. How is this instrument evolving?

REITs were earlier part of the broader mutual fund bucket along with equities. With REITs now classified as equity, funds earmarked for them can also be channelled separately into Infrastructure Investment Trusts (InvITs). This reclassification enhances the growth potential of REITs.

Although India was a late entrant compared to countries like the US, Singapore, and South Korea, it has caught up reasonably well, with five large and well-established REITs. Both REITs and InvITs are mandated to distribute returns to investors, making them attractive investment avenues - particularly among pension funds, where they continue to enjoy growing popularity.

Are more REITS coming to the market?