REIT, InvIT Expansion To Power India's Next Infrastructure Cycle: SEBI Chairman
The next phase of infrastructure expansion must be driven by market-linked avenues such as REITs and InvITs, said Tuhin Kanta Pandey.
India will need massive infrastructure investment over the next two decades, said SEBI Chairman Tuhin Kanta Pandey, warning that without sustained capital infusion, the country’s growth cannot be maintained.
Speaking at the National Conclave on REITs & InvITS, Pandey noted that public finance, PPP models and bank credit have laid the foundation so far, but the next phase of infrastructure expansion must be driven by market-linked avenues such as REITs and InvITs.
Pandey said SEBI’s focus is to strengthen the bridge between infrastructure and capital markets. India currently has 24 InvITs and 5 REITs listed, and these instruments offer real cash returns to unit holders.
However, retail participation remains low, with SEBI’s survey showing only 10% awareness among investors. The regulator is actively engaging with industry bodies to boost participation and is working with IRDAI, EPFO and others to encourage investments.
He added that, based on industry feedback, SEBI is working on improving ease of doing business and is exploring whether private REITs can participate in greenfield projects.
Speaking during a fireside chat with Pallavi Shroff, Managing Partner at Shardul Amarchand Mangaldas, Pandey said penetration of REITs and InvITs in India stands at just 12%. Liquidity in the market, he noted, will improve as more players come in.
Previously, Abhishek Goel, the managing director and head of Infrastructure and Real Assets, noted that the allowance of REITs as equity increases vibrancy and depth in the market, adding that he expects REITs to stand out in performance, especially in a volatile market.
These investment vehicles have been successful in India, with REITs and Infrastructure Investment Trusts nearly Rs 1.5 trillion in the last five years alone. As of the end of the 2025 financial year, REITs and InvITs together manage assets worth an estimated Rs 8.7 lakh crore.
