SEBI Classifies REIT Units as Equity for Mutual Funds
Why in the news
SEBI changed mutual fund regulations so REIT units clearly count as equity, letting fund houses hold them in equity portfolios within limits.
Key facts
- Limit: 10% of scheme corpus in one REIT issuer.
- Cleared by the SEBI board in September 2025.
- Goal: clarity on treatment and diversified real estate exposure inside equity schemes.
About REITs
A pooled vehicle that owns, runs or finances income-generating property such as offices, malls, hotels and warehouses.
| Feature | Detail |
|---|---|
| Regulator | SEBI |
| Introduced | 2014, SEBI (Real Estate Investment Trusts) Regulations, 2014 |
| Form | Trust registered with SEBI |
| Parties | Sponsor (sets up), Trustee (holds assets), Manager (runs operations) |
Significance
- May lift fund participation, liquidity and investor interest in REITs.
Exam angle
- REIT regulator: SEBI; cap: 10% per issuer.