SEBI Proposes IFSC Depository Receipts for REITs and InvITs

IFSC Platform to Enable Global Access

SEBI has proposed enabling depository receipts (DRs) for REITs and InvITs at the International Financial Services Centres (IFSC) in GIFT City. The framework aims to attract Non-Resident Indian (NRI) and foreign capital by offering internationally familiar investment instruments with Indian asset backing.

The proposal includes investor protection safeguards, particularly for private InvITs, and prescribes compliance with IFSCA (International Financial Services Centres Authority) regulations. DRs will be denominated in foreign currency and traded in a tax-efficient environment.

This opens structuring opportunities for asset managers and trust sponsors. Legal practitioners must now consider cross-border securities law, custody arrangements, and anti-money laundering compliance in DR issuance mandates.