The Securities & Exchange Board of India has reduced the minimum application value for retail investors of Real Estate Investment Trusts in the range of ₹10,000-15,000 from ₹50,000 and has also revised the trading lot to just one unit, bringing it on a par with equity shares.
The move is expected to enhance the liquidity of the asset class in addition to providing the much-needed depth to the market that has so far seen a total of three REIT listings in India.
Embassy REIT CEO Michael Holland said the reduction in lot size will increase liquidity for the REIT market, enable REITs to be included in benchmark indices and allow greater participation from newer pools of institutional and retail investors.
With this, more retail investors can invest in this asset class. The revised norms may also prompt more REIT listings hereon.
Currently, there are three public listed office Reits in the country – Embassy REIT, Mindspace Business Parks REIT and the most recently listed Brookfield India REIT.
India’s largest developer DLF Ltd is already gearing up for an office Reit and has appointed advisors.