09-November-2026
On 2 November, SEBI issued frameworks for depositary receipts backed by units of real estate investment trusts and infrastructure investment trusts. The route can give overseas investors access through eligible exchanges. That is a financing development, but the circulars do not establish that any particular office project, road or other asset will receive new investment.
The Property Times asks: In the first transactions, how much money will reach the trust for new assets or upgrades, how much will refinance existing obligations, and how much will go to existing holders selling units? All three can serve a purpose. They have very different implications for the asset and for investors.
The Property Times recommends that trust managers publish a plain-language transaction table separating fresh capital from secondary sales. Where the trust receives money, it should disclose the intended use, the assets involved and any related-party interests. Later reports should show what was actually deployed and what changed at the asset level. Exchanges can help by making these tables easy to find and compare.
Overseas access may widen the investor base. The stronger achievement would be making the destination of that capital clear to everyone, including domestic unitholders.
A new funding route deserves a simple public answer: who received the money, and what did it pay for?
