SEBI Chief Shows Confidence In REITs, InvITs, And Municipal Bonds For Next Decade

The market regulator, the Securities and Exchange Board of India’s Chairperson Madhabi Puri Buch, on Friday affirmed her confidence in real estate investment trusts, or REITs and infrastructure investment trusts, or InviTs and municipal bonds while speaking at the Samvad Event at NSE. 

As per the chairperson, while the growth in these areas is slim currently, it could grow widely over the next decade and may surpass the benchmark of Rs. 3.3 trillion in equity and Rs. 7.3 trillion in debt last year. 

Buch also gave a special mention to SEBI's new fast-track rights issue mechanism, designed to simplify and accelerate capital raising. "With an end-to-end timeline of under 26 days, this process reduces costs and prioritises existing shareholders," she said.

Furthermore, while addressing 300 audience members and over 1700 online participants at the event, she also applauded the mutual fund industry. 

Assets under management (AUM) have surged to Rs. 67 lakh crore, with the number of mutual fund folios and SIP accounts showing consistent increases, she said. 

Buch further thanked SBI for popularising the soon to come initiative of low-cost Rs 250 SIP, expressing optimism about its ability to expand retail participation across India.

While equity markets often dominate headlines, Buch shed light on the critical role of corporate bonds, which contribute Rs.60 for every Rs.100 in corporate credit from banks. Though most bonds are held to maturity and see limited secondary market trading, their primary market remains robust, driving significant capital formation.