The India International Financial Services Centres Authority has released an expert committee report setting out a roadmap to develop real estate investment trusts and infrastructure investment trusts in GIFT IFSC as a global platform for real estate and infrastructure financing. The report broadens the opportunity set beyond the India-focused REITs and InvITs originally envisaged by identifying Mixed REITs and InvITs and Global REITs and InvITs as additional structures that could help attract global investors, sovereign wealth funds, pension funds and other long-term capital providers. The recommendations span product design, regulation, inter-regulatory issues and tax. On product innovation, the committee proposes introducing mortgage REITs in GIFT IFSC, extending existing anti-greenwashing principles for ESG-labelled debt securities to REITs and InvITs marketed as green, and taking a calibrated approach to Small and Medium REITs while monitoring domestic market developments and tokenisation of real-world assets. On the regulatory side, it recommends amending the IFSCA Fund Management Regulations, 2025 to add mechanisms including Inducted Sponsors, Re-Designated Sponsors, Self-Sponsored Investment Managers, Fast Track Rights Issues and Subordinate Units, alongside an Investor Protection Fund to support capital raising. It also calls for inter-regulatory relief, including exemption for IFSC REIT and InvIT investments into Indian entities from sectoral caps and the three-year lock-in under the automatic route, exemption for Indian sponsors from the Overseas Portfolio Investment limit, and access for SEBI-registered REITs and InvITs to GIFT IFSC exchanges through depositary receipts and dual or secondary listings. Tax recommendations include parity with SEBI-registered trusts under the Income Tax Act, 2025 and exemption of foreign-sourced income in the hands of non-resident unitholders. IFSCA said it will examine the recommendations with relevant stakeholders and consider policy, regulatory and legislative measures for implementation where required.
India International Financial Services Centres Authority2026-07-15
India International Financial Services Centres Authority releases expert committee report on REITs and InvITs roadmap for GIFT IFSC
The India International Financial Services Centres Authority has published an expert committee report on developing REITs and InvITs in GIFT IFSC as a global real estate and infrastructure financing hub. The report recommends expanding beyond India-focused structures to Mixed and Global REITs and InvITs, alongside new product, regulatory, inter-regulatory and tax measures. IFSCA will review the proposals with stakeholders and consider implementation steps.