Are REITs Regulated?

Ever wondered who oversees these large-scale real estate investments and ensures that your money is safe? How do investors know that REITs operate transparently and fairly? Are REITs regulated in India?

In India, Real Estate Investment Trusts (REITs) are regulated by the Securities and Exchange Board of India (SEBI). 

This framework not only ensures transparency and investor protection but also aligns Indian REITs with global best practices, giving investors confidence in this growing investment option.

Are REITs Safe in India?

REITs in India are considered relatively safe for investors because they are regulated by SEBI, which ensures transparency and investors’ protection. In September 2014, SEBI introduced the Real Estate Investment Trusts (REITs) Regulations, providing a comprehensive framework for the establishment, registration, and functioning of REITs in India. 

This regulatory framework mandates that REITs:

• Structure: Operate as trusts registered under the Indian Trusts Act, 1882.
• Listing: List their units on recognized stock exchanges like the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
• Investment Mandate: Invest primarily in completed and revenue-generating real estate assets.
• Income Distribution: Distribute at least 90% of their taxable income to unitholders annually.
• Governance: Adhere to stringent disclosure norms, corporate governance standards, and periodic reporting requirements.

By following these SEBI regulations, REITs provide a structured and transparent investment platform, helping investors feel more confident about the safety of their investment in Indian real estate.

Latest REITs Regulations

In September 2025, SEBI approved significant reforms to strengthen the REIT framework further:

• Equity Classification: REITs have been reclassified as equity instruments, aligning them with global standards and enhancing their attractiveness to institutional investors.
• Strategic Investor Definition: The definition of ‘strategic investor’ has been broadened, facilitating greater participation from mutual funds and foreign portfolio investors.

These reforms are expected to deepen market liquidity, broaden the investor base, and bolster the growth trajectory of the Indian REIT market.

Are Private REITs Regulated?

In India, private REITs are not subject to SEBI’s REIT regulations and are not listed on stock exchanges. 

These private entities operate under different legal frameworks and may have higher investment thresholds and limited liquidity. 

Investors should exercise caution and conduct thorough due diligence before considering investments in private REITs.

Public REITs in India

As of 2025, several SEBI-registered REITs have demonstrated strong performance and offer attractive investment opportunities:

1. Embassy Office Parks REIT: This is India’s first publicly listed REIT, with a latest valuation at ₹399.44, focusing on premium office spaces across major cities.
2. Mind space Business Parks REIT: Valued at ₹422.99, this specializes in Grade-A office parks and business campuses, catering to multinational corporations.
3. Brookfield India Real Estate Trust: Offers a diversified portfolio of commercial properties with a focus on long-term capital appreciation, with a market price of ₹319.96.
4. Nexus Select Trust: India’s first retail-focused REIT with a market price of ₹146.70, this invests in high-quality shopping malls and retail spaces.
5. Knowledge Realty Trust: A recent entrant with a robust portfolio and significant investor interest.

If you are interested to invest in REITs in India then begin your journey now. To start begin the process of opening a Demat account with reliable stock brokers.

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Conclusion

REITs in India are well-regulated investment vehicles, offering transparency, liquidity, and access to income-generating real estate assets. With recent regulatory reforms enhancing their appeal, SEBI-registered REITs present a compelling investment option for both retail and institutional investors seeking to diversify their portfolios.

FAQs

Q1: Does SEBI regulate REITs in India?

Yes, REITs in India are regulated by SEBI under the Real Estate Investment Trusts (REITs) Regulations, 2014, ensuring transparency, investor protection, and compliance with global standards.

Q2: Are Private REITs Regulated in India?

Private REITs in India are not regulated by SEBI and are not listed on stock exchanges. They operate under different legal frameworks with less liquidity and higher investment thresholds compared to public REITs.

Q3: How Does SEBI Regulate REITs in India?

SEBI regulates REITs by mandating strict disclosure norms, corporate governance standards, and income distribution requirements. REITs must distribute at least 90% of their taxable income to shareholders, ensuring regular income for investors.