Sebi chief Buch urges investors to invest in REITs and InvITs
Notable because
Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) offer investors many benefits, including fractional ownership of assets as well as preferential tax treatment for dividend income. Another benefit, particularly for InvITs, is India’s RE ambitions and the sizeable associated investment requirements. By facilitating the recycling of capital (both equity and debt), InvITs can also be effective catalysts that unlock much-needed capital for incremental capacity development.
What to look out for in the months ahead
InvITs have already picked up momentum in segments such as roads and RE. Yet, municipal bonds (the third instrument mentioned along with InvITs and REITs) have not seen significant growth in recent years. Can municipal green bond issuances, a specific sub-category of municipal bonds in general, catalyse the evolution of India’s broader municipal financing landscape?