The International Financial Services Centre Authority (IFSCA) at Gujarat International Finance Tec-City (GIFT City) has established an expert committee to drive development of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs).
The committee, chaired by Ananta Barua, a former full-time member of the Securities and Exchange Board of India (SEBI), brings together leaders and experts from various sectors including issuers, investment bankers, consultancy firms, law firms and stock exchanges.
Its primary objectives include providing policy recommendations to facilitate the development of REITs and InvITs in GIFT IFSC, but it also aims to study global best practices for business trusts and make recommendations for their implementation in the GIFT IFSC framework.
According to the official announcement by the IFSCA, the plan is part of the Indian government’s project to become a developed nation by 2047. This would need significant investment in infrastructure, and financial structures like REITs and InvITs, which are crucial for attracting investment.
The committee will recommend amendments in legal, taxation and regulatory frameworks to enhance the setup of REITs and InvITs within GIFT IFSC. It will also: delve into measures for the listing of foreign currency-denominated securities issued by Indian REITs and InvITs on stock exchanges in GIFT IFSC; work towards establishing a supportive regulatory framework for micro, small and medium REITs in GIFT IFSC; and promote innovation within this domain.
