India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), on Friday, 12 September 2025, approved the classification of the regulated asset class Real Estate Investment Trusts (REITs) as equity, reported the news agency Reuters.
Sebi Chairman Tuhin Kanta Pandey also told the media after the Sebi board meeting that the capital market regulator aims to broaden the definition of ‘strategic investor’ to boost market participation.
Here are 10 things Sebi announced on Friday
1. IPO ease for big firms: The capital markets regulator lowered the minimum public offer size for very large companies, while also giving them more time to meet the minimum shareholding norms.
2. Higher anchor investment: Sebi raised the anchor investor allocation from the current one-third level to 40% of the initial public offering.
3. Investor access: Sebi will also offer ‘single-window clearance’ to trusted foreign investors such as central banks, sovereign wealth funds, and regulated global institutions.
4. Related party transactions: Sebi also revised the threshold for shareholder approval requirements.
5. Foreign Portfolio Investors in IFSCs: The markets regulator also said that the Retail schemes in International Financial Services Centres (IFSCs) can now register as foreign portfolio investors (FPIs).
6. Flexible AIF Framework: Sebi also created a new category of Alternative Investment Funds (AIFs) exclusively for accredited investors, with relaxed regulations.
7. Large value funds relaxations: Sebi revamped the minimum investment threshold for accredited investors from ₹70 crore to ₹25 crore.
8. Classification of REITs: Real Estate Investment Trusts (REITs) are to be treated as equity, while InvITs will remain as hybrid instruments for the purpose of investments by mutual funds and specialised investment funds, reported the news agency PTI.
9. MF distributors boost: Mutual Fund distributors will receive ip to 1% incentive for net inflows from beyond the top 30 cities, along with extra commissions for investment by the women investor category.
10. Governance and oversight: The markets watchdogSebi will review the regulatory framework for registrars and approve amendments for investment advisers, research analysts, and market infrastructure institutions.
The reforms approved by Sebi are expected to deepen capital markets while enhancing investor protection to attract more domestic and international capital into the Indian market.
Along with the reforms, the capital market regulator decided to make it easier for low-risk foreign investors to participate in the Indian securities market, a move aimed at simplifying compliance and enhancing the country’s attractiveness as an investment destination.
