Mutual funds have held talks with the Securities and Exchange Board of India (SEBI) to introduce a dedicated category for real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs), said two people in the know.
As per current norms, all schemes of an MF cannot own more than 10 per cent of units issued by a single REIT and InvIT issuer. Further, an MF scheme cannot invest more than 10 per cent of its Net Asset Value (NAV) in units of REITs and InvITs and more than 5 per cent of its NAV in units issued by a single issuer.
