Market Regulator Securities and Exchange Board India F India (SEBI) on Friday approved re -classification of real estate investments
As the Trusts (Reits) equity, it has a paving way for partnership of mutual funds to partnership. The regulator also maintained a ‘hybrid’ classification for invitations for investment purposes through MFS and special investment funds.

The decision was taken at a SEBI board meeting held today. Chairman of the meeting, Tuhin Kanta Pandey, finished third after taking the chief position in March.

Re -classification was proposed in view of the characteristics of the REIT, which is more fluid when the global is more fluid towards equity and arranged with global best.

Invitations, on the other hand, are mainly placed products privately with more stable cash flow and therefore have less liquidity and therefore maintained hybrid classification.

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RIT After the re -classification of, investment through mutual funds will be considered within the limit of investment allocation for equity instruments and will also be eligible to incorporate them into equity indicators, adding in the SEBI publication that it will enable enhanced investment through mutual fund schemes in RIIT.

Moreover, as a result of the equity classification of Reits, the existing investment limit applicable to both REITs and invitations will now be.

Be especially available for invitations to facilitate growth in this segment.

The move has been followed by the response received in public consultation in April 2025 and later with the MFAC, related industry organizations and stakeholders.

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Commenting on development, the Indian Reuts Association called this decision a “progressive move”. “This important step shows a significant goal of strengthening the RIT ecosystem in India and is aligned with global best efforts where REIT is part of equity indicators. This decision is a step that will contribute to the RIIT market’s Depth and to enhance these tools to enhance these tools.

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