The Securities and Exchange Board of India (SEBI) has released a comprehensive framework for the issuance of depository receipts (DRs) on units of Real Estate Investment Trusts (REITs). According to the circular, REITs registered with SEBI are permitted to issue units or facilitate the transfer of existing units for issuing DRs only in permissible jurisdictions, which include the International Financial Services Centre in India, such as the India International Exchange and the NSE International Exchange.
Under the new rules, any fresh issue of DRs requires prior approval from at least 75% of the total votes cast by unitholders in favor of the resolution. Additionally, the price of issue or transfer of units for DRs cannot be less than the price applicable to corresponding modes of issue to domestic investors under applicable laws. The framework also sets out eligibility conditions, pricing norms, voting rights, disclosure requirements, and obligations for managers, domestic custodians, and foreign depositories.
According to the regulator, the provisions of this circular come into force with immediate effect, and have been issued to protect investors and promote the development of the securities market.
What it means
- Any fresh issue of depository receipts needs prior approval from unitholders with at least 75% of votes cast in favor.
- Depository receipt holders, including their beneficial owners, must not be persons resident in India.
- The provisions of the circular take effect immediately.
Source
Securities and Exchange Board of India, “Framework for Issuance of Depository Receipts on Units of REITs” dated 2 November 2026. Read the original release (PDF).
Summary of an official release for general information only. Not investment advice. Read the original source before acting on any information.
Official RBI, SEBI, Government and Defence updates as they happen.
Leave a Reply