Legislations to be amended to fund InvITs, REITs

15 Feb 2021 CW Staff

The finance ministry said last week that debt financing of REITs and InVITs by Foreign Portfolio Investors (FPIs) would be enabled by making suitable amendments in the relevant legislations.

The Ministry of Finance had announced during the Union Budget 2021-22 that the Finance Bill has proposed amendments to permit foreign portfolio investors (FPIs) an entry into debt financing of emerging investment vehicles — Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Following up on the announcement, the government is acting to make such investment vehicles attractive and lucrative for investors. The FM proposes to exempt taxes on dividends on InvITs and REITs.

The move comes in a bid to increase funds for the real estate and infrastructure sectors.

Make in Steel 2021

24 February

Click for event info

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

Finance minister Nirmala Sitharaman announced this move during the Budget 2021.

A finance ministry statement announced, "The Government of India as part of the Finance Bill, 2021 has proposed amendments in the Securities Contracts (regulation) Act, 1956 and Securities and Exchange Board of India Act, 1992 with consequential amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to confer the power to Pooled Investment Vehicles (defined to include AIFs, REITs, InvITs etc.) to borrow and issue debt securities."

REITs and InvITs are relatively new investment instruments in the Indian market. While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out. An InvIT comprises a portfolio of infrastructure assets such as highways and power transmission assets.

Image: The amendments have been made in a bid to increase funds for the real estate and infrastructure sectors.

Also read: A whole new chapter in public funding

Also read: An Infra-Nirbhar Budget

The finance ministry said last week that debt financing of REITs and InVITs by Foreign Portfolio Investors (FPIs) would be enabled by making suitable amendments in the relevant legislations. The Ministry of Finance had announced during the Union Budget 2021-22 that the Finance Bill has proposed amendments to permit foreign portfolio investors (FPIs) an entry into debt financing of emerging investment vehicles — Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Following up on the announcement, the government is acting to make such investment vehicles attractive and lucrative for investors. The FM proposes to exempt taxes on dividends on InvITs and REITs. The move comes in a bid to increase funds for the real estate and infrastructure sectors.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info Finance minister Nirmala Sitharaman announced this move during the Budget 2021. A finance ministry statement announced, The Government of India as part of the Finance Bill, 2021 has proposed amendments in the Securities Contracts (regulation) Act, 1956 and Securities and Exchange Board of India Act, 1992 with consequential amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to confer the power to Pooled Investment Vehicles (defined to include AIFs, REITs, InvITs etc.) to borrow and issue debt securities. REITs and InvITs are relatively new investment instruments in the Indian market. While a REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out. An InvIT comprises a portfolio of infrastructure assets such as highways and power transmission assets.Image: The amendments have been made in a bid to increase funds for the real estate and infrastructure sectors. Also read: A whole new chapter in public funding Also read: An Infra-Nirbhar Budget

Infrastructure Urban

09 Apr 2026

Mineral Auction Rules Amended To Speed Mine Operationalisation

The Ministry of Mines notified the Mineral (Auction) Second Amendment Rules, 2026 on 30 March 2026 to accelerate operationalisation of mines and improve ease of doing business in the mining sector. The amendment follows a prior change to the Mineral (Auction) Rules, 2015 effected on 17 October 2025 that introduced intermediary timelines between issuance of a letter of intent (LoI) and execution of the mining lease. The 2025 change provided that one per cent of performance security would be appropriated for each month of delay by the preferred bidder and introduced incentives for early operatio..

Infrastructure Transport

09 Apr 2026

Indian Railways Strengthens Telecom And AI Safety Systems

Indian Railways strengthened its telecom and digital infrastructure during 2025-26 with the aim of improving safety, operational efficiency and the passenger experience. The programme promoted modernisation through advanced technologies, robust communication systems and passenger-centric solutions. These measures were presented as part of a drive to build a digitally integrated rail ecosystem. A key development was the enhancement of the Internet Protocol Multi-Protocol Label Switching (IP MPLS) backbone, commissioned at 1,396 stations to meet bandwidth needs of mission-critical applications. ..

Infrastructure Transport

09 Apr 2026

NHAI Holds Workshop on Litigation Management and Coordination

The National Highways Authority of India (NHAI) organised a day-long workshop in New Delhi to strengthen capacity and interdepartmental synergy for faster execution of national highway projects. The event was held under Mission Karmayogi – Sadhana Saptah, an initiative of the Government of India to enhance governance through capacity building and improved processes. The workshop focused on structured and solution oriented deliberations to address implementation constraints. The session was chaired by the NHAI chairman Santosh Kumar Yadav and brought together senior officials from NHAI, the M..