Real Estate Investment Trusts (REITS) and Infrastructure Investment Trusts (InvITs) will be included in the Nifty indices from September 30, 2021, as per the revised eligibility norms announced by the NSE. "All equity shares, REITs and InvITs that are traded (listed and traded and not listed but permitted to trade) at the NSE are eligible for inclusion in the Nifty indices," NSE said in a press release issued on August 23.
The existing rules stipulate that only shares traded on NSE can be included in the Nifty indices.
Meanwhile, on August 11, NSE lowered the trading lot size of the six listed REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) to a single unit from the earlier size ranging from 100 to 2,500.
Real Estate Investment Trusts channelise money from various investors into a professionally managed Trust, which in turn invests in either immovable and rent-yielding properties or special purpose vehicles holding such properties.
On the other hand, Infrastructure Investment Trusts are trusts that own, operate and invest in completed and under-construction infrastructure projects. These allow investors to put money directly into infrastructure projects, without having to own or manage the projects by themselves.
There are currently three listed REITs on NSE i.e. Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust. Three InvITs are also listed on the NSE, viz. India Grid Trust, IRB Invit Fund and Powergrid Infrastructure Investment Trust.
In other announcements, NSE has proposed a semi-annual review of all its indices. Bank of Baroda, Cholamandalam Investment, Jindal Steel, PI Industries and SAIL will make an entry into the Nifty Next 50 index, replacing Abott India, Alkem Labs, MRF, Petronet LNG and UBL.
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