The Securities and Exchange Board of India (Sebi) is in talks with the central and state governments to accelerate growth in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), said Sebi chairman Tuhin Kanta Pandey at the Crisil Investment Conclave 2026.
“To expand the use of REITs and InvITs, we are actively engaging with the ministry of finance and state governments for public asset monetization,” he said on 20 February. “This can unlock value from completed assets and recycle capital into new infrastructure.”
REITs are investment vehicles that pool money from investors to invest in income-generating real estate assets such as office buildings, malls, and commercial properties. They distribute a major portion of the rental income as dividends to investors. On the other hand, InvITs invest in infrastructure assets like highways, power transmission networks, and pipelines, generating income from toll collections or long-term usage contracts.
India has five REITs and 24 InvITs, according to the regulator. Mint reported on 13 February that mutual funds were keeping Reits at an arm’s length despite Sebi’s efforts to push institutional flows into the segment. Similarly, infrastructure trusts, most of which are private, have seen limited traction from issuers or investors.
Both segments are plagued by low investor awareness, relatively lower returns, and low liquidity, prompting Sebi to introduce a slew of measures over the last few years.
“The data over the last few years shows that Reits and InvITs have scaled significantly. In the next phase, the focus should be on enhancing liquidity, increasing participation, and higher volume of issuances,” said the Sebi chief.
“We are focused on broadening the domestic investor base, with continued engagement with insurance and pension funds, and targeted dialogues with institutional investors,” he added.
AIF push
Speaking at the conclave, Pandey said insurers, pension funds, mutual funds and family offices are increasingly becoming important for the alternative investment funds (AIF) landscape, as they manage long-term liabilities and need duration-matched, stable, and diversified assets, roles that alternatives can fulfil when structured strategically.
AIFs are privately pooled investment vehicles that collect funds from sophisticated investors to invest in assets such as private equity, venture capital, hedge funds, and other alternative assets.
Sebi has been trying to push accreditation in the AIF space in the country. The number of accredited investors, who are sophisticated individuals or institutions that meet specified net worth criteria set by the regulator, has grown threefold to over 1,900 in January 2026 from 649 in May 2025, said the regulator.
“This shows traction. But it also shows the headroom that remains,” said Pandey. “We are simplifying processes, reducing documentation, and exploring policy proposals to widen the accreditation framework further.”
