REITs and InvITs to be added in Nifty indices from September 30
Real Estate

REITs and InvITs to be added in Nifty indices from September 30

As per the new eligibility criteria revealed by NSE, from September 30 onwards, Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) would be included in the Nifty records.

The media reports revealed that every equity share, InvITs and REITs that are sold at the NSE are eligible for inclusion in the Nifty indices.

Under the existing rules, only shares sold on NSE are eligible for inclusion in the Nifty indices.

InvITs and REITs are new investment instruments in India but are well-known in global markets. REIT includes a portfolio of commercial real estate assets, a huge part of which would be rented out. While InvITs includes a portfolio of infrastructure assets like power transmission assets, highways, etc.

In March-end, overall 15 InvITs and four REITs were registered. Of which, three REITs and six InvITs were listed on the stock exchange.

These investment vehicles collected around Rs 55,000 crore in 2020-21, reaching their net assets to Rs 1.64 lakh crore.

The funds were collected via preferential issue, institutional placement, initial offer, and rights issue. Now, the eligibility criteria for the Nifty pharma index has been updated.

In the semi-annual review records Cholamandalam Investment Fin Co, Bank of Baroda, Jindal Steel & Power, PI Industries and Steel Authority of India Ltd (SAIL) would be included in the Nifty Next 50 index.

The index managing sub-committee of NSE Indices has decided to make modifications in the eligibility criteria of Nifty indices and the replacement of stocks in various indices. These changes would be valid from 30 September 2021.

Image Source

As per the new eligibility criteria revealed by NSE, from September 30 onwards, Infrastructure Investment Trusts and Real Estate Investment Trusts (REITs) would be included in the Nifty records. The media reports revealed that every equity share, InvITs and REITs that are sold at the NSE are eligible for inclusion in the Nifty indices. Under the existing rules, only shares sold on NSE are eligible for inclusion in the Nifty indices. InvITs and REITs are new investment instruments in India but are well-known in global markets. REIT includes a portfolio of commercial real estate assets, a huge part of which would be rented out. While InvITs includes a portfolio of infrastructure assets like power transmission assets, highways, etc. In March-end, overall 15 InvITs and four REITs were registered. Of which, three REITs and six InvITs were listed on the stock exchange. These investment vehicles collected around Rs 55,000 crore in 2020-21, reaching their net assets to Rs 1.64 lakh crore. The funds were collected via preferential issue, institutional placement, initial offer, and rights issue. Now, the eligibility criteria for the Nifty pharma index has been updated. In the semi-annual review records Cholamandalam Investment Fin Co, Bank of Baroda, Jindal Steel & Power, PI Industries and Steel Authority of India Ltd (SAIL) would be included in the Nifty Next 50 index. The index managing sub-committee of NSE Indices has decided to make modifications in the eligibility criteria of Nifty indices and the replacement of stocks in various indices. These changes would be valid from 30 September 2021. Image Source

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