SEBI Reclassifies REITs as Equity

The Securities and Exchange Board of India (SEBI) has decided to change the category of Real Estate Investment Trusts (REITs) from a special type to a type of stock.

This change will start affecting mutual funds from January 1, 2026, and will be included in stock market indices from July 1, 2026.

This means that mutual funds and specialized investment funds will be able to invest more easily in REITs, which could make them more popular and easier to buy and sell.

However, funds that mainly invest in bonds will no longer be able to invest in REITs after December 31, 2025, and are encouraged to sell their REIT holdings over time.

SEBI has asked the Association of Mutual Funds in India to update their lists to reflect this change.

The goal is to make REITs more attractive to investors and increase their participation in the market.