Sebi Lets REITs and InvITs Issue Foreign Currency Depository Receipts

Market regulator Sebi has set up new rules that let real estate investment trusts and infrastructure investment trusts issue foreign currency denominated depository receipts.

Capital Access

This step helps these trusts raise funds from foreign markets using international stock exchanges located in GIFT City. The trusts can either issue new units or help transfer existing units held by current investors to create these depository receipts.

Rules And Approvals

To move forward with issuing depository receipts, the trusts must get approval from their unitholders, with a majority of votes supporting the plan. The regulator noted that specific conditions and limits will apply to both the participating trusts and the existing unit holders.

Context

Depository receipts let companies and trusts list and trade their shares or units on foreign exchanges without needing a direct listing in that country. GIFT City in Gujarat serves as India's main hub for international financial services, offering a separate tax and regulatory setup for global investors.