IRA Welcomes SEBI’s Move to Classify REITs as Equity for Index Inclusion

The Indian REITs Association (IRA) has welcomed SEBI’s decision to classify Real Estate Investment Trusts (REITs) as equity for inclusion in market indices. The move, aligned with global best practices, marks a major milestone in strengthening the REIT ecosystem in India.

According to IRA, the reform will deepen the REIT market, improve liquidity, and expand investor participation. It also builds on earlier initiatives such as SEBI’s 2021 reduction in lot size, further enhancing India’s position as a progressive investment destination for institutional capital in yielding assets.

IRA has also lauded SEBI’s decision to broaden the scope of “Strategic Investor” for REITs, a step expected to facilitate wider investor engagement.

“The IRA commends SEBI for these forward-looking reforms and remains committed to working with all stakeholders to build a robust and vibrant REIT market in India,” the association said, urging stock exchanges to revise index eligibility criteria to include REITs.