SEBI introduces new regulatory framework for depository receipts
ECONOMY & POLICY

SEBI introduces new regulatory framework for depository receipts

Sebi proposed allowing REITs and InvITs to issue depository receipts in order to allow foreign investors to participate in units of Indian emerging investment instruments. The Securities and Exchange Board of India (Sebi) stated in a consultation paper that this will benefit foreign investors because depository receipts eliminate the need to trade directly with the Indian stock exchange.

Real Estate Investment Trusts and Infrastructure Investment Trusts are Business Trusts that hold and operate revenue-generating real estate or infrastructure assets. REITs and InvITs raise funds by selling units to the general public.

REITs and InvITs do not have multiple schemes or unit classes. The units are denominated in Indian rupees, and they must be listed on an Indian recognised stock exchange.

“Permitting issuance of Depository Receipts against units of REITs and InvITs which are listed on a foreign stock exchange gives foreign investors an opportunity to participate in the units of Indian REITs and InvITs,” sebi said.

The Securities and Exchange Board of India (sebi) has requested public feedback on the proposed regulatory framework until February 21.

Sebi proposed that REITs and InvITs will be eligible to issue permissible securities for the issuance of depository receipts if such trusts, their directors, and selling unit holders are not barred from accessing the capital market by Sebi, and they are not a willful defaulter or fugitive economic offender.

Under certain conditions, existing unit holders would be able to transfer permissible securities for the issuance of depository receipts.

The listing of DRs on international bourses should adhere to the highest standards. REITs and InvITs should make certain that DRs are only issued with units as permissible securities.

REITs and InvITs must file with Sebi and the recognised Indian stock exchange a copy of the initial document for DRs issued on the back of permissible securities. Furthermore, for record purposes, final documents for such initial issues should be filed with them.

According to Sebi, REITs and InvITs must ensure that any public disclosures they make on international bourses comply with the requirements of the permissible jurisdiction where the DRs are listed. These disclosures must also be filed with a recognised bourse within 24 hours of the filing date.

See also:
Highways InvIT to be open on stock exchange
Infrastructure financing to evolve with new initiatives


Sebi proposed allowing REITs and InvITs to issue depository receipts in order to allow foreign investors to participate in units of Indian emerging investment instruments. The Securities and Exchange Board of India (Sebi) stated in a consultation paper that this will benefit foreign investors because depository receipts eliminate the need to trade directly with the Indian stock exchange. Real Estate Investment Trusts and Infrastructure Investment Trusts are Business Trusts that hold and operate revenue-generating real estate or infrastructure assets. REITs and InvITs raise funds by selling units to the general public. REITs and InvITs do not have multiple schemes or unit classes. The units are denominated in Indian rupees, and they must be listed on an Indian recognised stock exchange. “Permitting issuance of Depository Receipts against units of REITs and InvITs which are listed on a foreign stock exchange gives foreign investors an opportunity to participate in the units of Indian REITs and InvITs,” sebi said. The Securities and Exchange Board of India (sebi) has requested public feedback on the proposed regulatory framework until February 21. Sebi proposed that REITs and InvITs will be eligible to issue permissible securities for the issuance of depository receipts if such trusts, their directors, and selling unit holders are not barred from accessing the capital market by Sebi, and they are not a willful defaulter or fugitive economic offender. Under certain conditions, existing unit holders would be able to transfer permissible securities for the issuance of depository receipts. The listing of DRs on international bourses should adhere to the highest standards. REITs and InvITs should make certain that DRs are only issued with units as permissible securities. REITs and InvITs must file with Sebi and the recognised Indian stock exchange a copy of the initial document for DRs issued on the back of permissible securities. Furthermore, for record purposes, final documents for such initial issues should be filed with them. According to Sebi, REITs and InvITs must ensure that any public disclosures they make on international bourses comply with the requirements of the permissible jurisdiction where the DRs are listed. These disclosures must also be filed with a recognised bourse within 24 hours of the filing date. See also: Highways InvIT to be open on stock exchange Infrastructure financing to evolve with new initiatives

Next Story
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?