Infrastructure Giants Dominate Listed Market: SEBI Chief Reveals
SEBI Chairman Tuhin Kanta Pandey highlights the significant impact of REITs and InvITs on the Indian market, with companies over Rs 50,000 crore market cap now forming 20% of listed firm value.
ReitsInvitsMarket CapitalizationInfrastructureReal EstateReal Estate NewsSep 18, 2025
Pandey emphasized that REITs and InvITs are among the most promising avenues for infrastructure and real estate investments, noting that both sectors have delivered substantial returns in recent years. He stressed the importance of these investment vehicles in fostering growth and development in the Indian economy.
Highlighting the strong presence of infrastructure companies in the country's listed market, Pandey revealed that firms with market capitalizations of Rs 50,000 crore and above now constitute 20% of the total market value on Dalal Street. This underscores the growing significance of these companies in the broader financial landscape.
Pandey also called for mutual and pension funds to allocate a portion of their investments to infrastructure securities, further emphasizing the potential for high returns and stability in these sectors. He mentioned that the market regulator, SEBI, has been actively involved in expanding the reach of municipal bonds in the country, aiming to diversify investment opportunities and enhance financial inclusion.
REITs and InvITs were introduced on Dalal Street in 2014, providing investors with a structured way to participate in real estate and infrastructure projects without the need for direct ownership of physical assets. These investment trusts pool funds from investors to own and operate income-generating properties, such as office buildings, shopping malls, and residential complexes, enabling investors to earn regular income primarily from rental or lease payments.
SEBI has recently decided to reclassify REITs as equity instruments while maintaining the status quo on InvITs. This move is expected to enhance the attractiveness of REITs for a broader range of investors, including retail participants.
Both REITs and InvITs are legally mandated to distribute at least 90% of their taxable income to investors, providing a steady stream of income that works similarly to dividends. This feature makes them particularly appealing for investors seeking regular returns and diversification in their investment portfolios.
In conclusion, the growing prominence of infrastructure companies and the success of REITs and InvITs in the Indian market highlight the sector's potential for sustained growth and investment opportunities. SEBI's proactive measures and regulatory support are expected to further bolster the development and expansion of these investment vehicles, contributing to the overall economic landscape of the country.
Frequently Asked Questions
What are REITs and InvITs?
REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are structured investment vehicles that allow investors to participate in real estate and infrastructure projects without owning physical assets directly. They pool funds from investors to own and operate income-generating properties.
What do REITs and InvITs let retail investors do?
REITs and InvITs enable retail and institutional investors to earn income from commercial real estate and infrastructure projects. They provide a way to benefit from rental or lease payments without the need for direct ownership of physical assets.
What do these trusts do?
These trusts pool funds from investors to own and operate income-generating real estate and infrastructure properties. Investors earn regular income primarily from rental or lease payments.
Is there any minimum payout that these trusts are required to pay?
Yes, both REITs and InvITs are mandated by law to distribute at least 90% of their taxable income to investors as distribution income. These payouts function similarly to dividends.
Why are REITs and InvITs considered promising investment avenues?
REITs and InvITs are considered promising because they offer a structured way to invest in real estate and infrastructure, which can provide stable returns and diversification. They have delivered significant returns in the past and are supported by regulatory measures to enhance their attractiveness.
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