SEBI widens access to yield assets: InvITs, REITs now within reach at Rs 25 lakh
Beginning September, investors can now participate in privately placed InvITs with an investment of Rs 25 lakh, compared with the earlier thresholds of Rs 1 crore or even Rs 25 crore, depending on the underlying asset mix.,
- Sep 10, 2025,
- Updated Sep 11, 2025 6:53 PM IST
The Securities and Exchange Board of India (SEBI) has lowered the entry barrier for privately placed Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), reducing the minimum ticket size from as high as Rs 1 crore–Rs 25 crore earlier to just Rs 25 lakh. The reform, effective September, harmonises the primary market with the secondary market where the minimum lot size was already pegged at Rs 25 lakh, giving affluent investors and family offices easier access to India’s real asset ecosystem.
This move comes at a time when InvITs and REITs are gaining traction in India, with their combined market capitalisation crossing Rs 1.1 lakh crore. These products provide exposure to yield-generating assets such as toll roads, renewable energy projects, power transmission lines, telecom towers, and commercial office parks—offering steady cash flows and long-term return potential.
“The move of SEBI to lower the minimum ticket size of InvITs and REITs to Rs 25 lakh is a proactive step towards broadening investment in real estate and infrastructure in India,” said Arpit Bansal, Founder and Director, La Wisteria. “Earlier, such investments were available only to large institutions and ultra-HNIs. Now, high-income professionals and family offices can also access this asset class, helping them diversify away from equities and debt while channelling capital into India’s growth story.”
In addition, SEBI has tightened the definition of “public” unitholders. Units held by related parties of sponsors, investment managers, or project managers will no longer be counted as public unless they qualify as Qualified Institutional Buyers (QIBs). This is expected to improve governance, transparency, and compliance with listing norms.
Pawan Kumar Agarwal, Managing Director of Nklusive, welcomed the changes, noting, “By reducing thresholds, SEBI has aligned the primary market with the secondary market, creating a more harmonised framework. This will broaden the investor base, increase liquidity, and enhance confidence in InvITs and REITs, which are already attracting rising interest from domestic and global investors.”
Flexibility on cash flows
In another important amendment, SEBI has allowed holding companies (holdcos) of InvITs and REITs to adjust negative cash flows against distributions from Special Purpose Vehicles (SPVs). Previously, holdcos had to transfer 100% of inflows from SPVs to the trust, even if they were incurring losses. The new rule enables them to offset deficits before distributing net cash flows, subject to disclosures. This added flexibility is expected to boost financial stability and sustainability.
Compliance streamlined
To further ease operations, SEBI has synchronised timelines for quarterly reports, trustee submissions, and valuation disclosures with financial results. Portfolio managers have also been directed to adopt a standardised disclosure format accompanied by a certification, ensuring greater transparency for clients.
A broader agenda
These reforms are part of SEBI’s ongoing effort to deepen India’s alternative investment ecosystem. By lowering barriers, clarifying governance, and easing compliance, the regulator aims to channel long-term capital into infrastructure and real estate development while offering investors a credible alternative to traditional markets. Over time, these changes could enhance liquidity, improve valuations, and make InvITs and REITs a more mainstream investment vehicle in India.
The Securities and Exchange Board of India (SEBI) has lowered the entry barrier for privately placed Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), reducing the minimum ticket size from as high as Rs 1 crore–Rs 25 crore earlier to just Rs 25 lakh. The reform, effective September, harmonises the primary market with the secondary market where the minimum lot size was already pegged at Rs 25 lakh, giving affluent investors and family offices easier access to India’s real asset ecosystem.
This move comes at a time when InvITs and REITs are gaining traction in India, with their combined market capitalisation crossing Rs 1.1 lakh crore. These products provide exposure to yield-generating assets such as toll roads, renewable energy projects, power transmission lines, telecom towers, and commercial office parks—offering steady cash flows and long-term return potential.
“The move of SEBI to lower the minimum ticket size of InvITs and REITs to Rs 25 lakh is a proactive step towards broadening investment in real estate and infrastructure in India,” said Arpit Bansal, Founder and Director, La Wisteria. “Earlier, such investments were available only to large institutions and ultra-HNIs. Now, high-income professionals and family offices can also access this asset class, helping them diversify away from equities and debt while channelling capital into India’s growth story.”
In addition, SEBI has tightened the definition of “public” unitholders. Units held by related parties of sponsors, investment managers, or project managers will no longer be counted as public unless they qualify as Qualified Institutional Buyers (QIBs). This is expected to improve governance, transparency, and compliance with listing norms.
Pawan Kumar Agarwal, Managing Director of Nklusive, welcomed the changes, noting, “By reducing thresholds, SEBI has aligned the primary market with the secondary market, creating a more harmonised framework. This will broaden the investor base, increase liquidity, and enhance confidence in InvITs and REITs, which are already attracting rising interest from domestic and global investors.”
Flexibility on cash flows
In another important amendment, SEBI has allowed holding companies (holdcos) of InvITs and REITs to adjust negative cash flows against distributions from Special Purpose Vehicles (SPVs). Previously, holdcos had to transfer 100% of inflows from SPVs to the trust, even if they were incurring losses. The new rule enables them to offset deficits before distributing net cash flows, subject to disclosures. This added flexibility is expected to boost financial stability and sustainability.
Compliance streamlined
To further ease operations, SEBI has synchronised timelines for quarterly reports, trustee submissions, and valuation disclosures with financial results. Portfolio managers have also been directed to adopt a standardised disclosure format accompanied by a certification, ensuring greater transparency for clients.
A broader agenda
These reforms are part of SEBI’s ongoing effort to deepen India’s alternative investment ecosystem. By lowering barriers, clarifying governance, and easing compliance, the regulator aims to channel long-term capital into infrastructure and real estate development while offering investors a credible alternative to traditional markets. Over time, these changes could enhance liquidity, improve valuations, and make InvITs and REITs a more mainstream investment vehicle in India.