Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey on Friday said that the regulator is working to strengthen the link between infrastructure building and the markets, to ensure there is an enhanced interest among retail investors for infra related funds.
Speaking at the National Conclave on Reits & InvITs 2025, Pandey said: “Sebi's role is to strengthen the bridge between infrastructure and markets. On the primary market side, we will continue to simplify capital raising through initial public offerings (IPOs), rights issues and bonds."
He highlighted that despite offering good returns, REITs and InvITs penetration in India remained considerably low, with only 24 InvITs and 5 REITs listed.
“Retail participation in REITs and InvITS is still low. Our investor survey shows that awareness about these instruments is around 10%, with penetration less than 1%. This must change. The retail investors should see these instruments as natural options in their portfolios, alongside equities, mutual funds, bonds and bank deposits. SEBI has taken several measures to make these products more retail orientated, enhance liquidity and be well regulated,” added Pandey.
He asserted that with more players entering into the market, there will be enhanced liquidity. He even suggested that processes like REITs reclassification and lower thresholds for InvITs will help increase the number of potential participants and improve liquidity. Further, he suggested that linking other modes of investments with the infra could help attract more investors.
"We are coordinating with the Ministry of Finance and several state governments to accelerate public-asset monetisation. We are working with the Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), and Employees' Provident Fund Organisation (EPFO) to facilitate greater participation from their entities under their purview," he said.