Sebi releases comprehensive guidelines for issuing depositary receipts on REIT and InvIT units

The Securities and Exchange Board of India established a detailed regulatory framework for issuing depositary receipts against units of Real Estate Investment Trusts and Infrastructure Investment Trusts. The new rules specify the eligibility norms, disclosure standards, and procedural guidelines that issuers must follow to offer these instruments to international investors. This regulatory update bridges domestic alternative investment vehicles with global capital markets, enabling foreign institutional participants to invest in Indian real estate and infrastructure assets more efficiently.

Previously, the absence of explicit guidelines restricted the cross-border issuance of depositary receipts for these specific trust units, limiting foreign capital mobilisation. Issuers, merchant bankers, and legal advisors must review the prescribed compliance standards and disclosure norms before structuring international depositary receipt offerings. Market participants should track further circulars from the regulator regarding operational execution and depository interactions.

Bottom line: Clear guidelines for trust-based depositary receipts facilitate deeper foreign investment flows into Indian infrastructure and real estate.