Now investors will get more investment options in the National Stock Exchange (NSE). Now REITs and InvITs are also going to be included in Nifty indices. Real estate investment trusts and infrastructure investment trusts (REITs and InvITs) will be included in the Nifty indices from September 30. NSE has said in a statement that all equity shares, REITS and InvITS traded on the exchange can be included in the Nifty indices. REITS and InvIT are new investment instruments in India but they are quite popular abroad.
Investors will get opportunity to invest in REIT and InvIT
Vinod Rohira, CEO, Mindspace Business Parks REIT, says that this step taken by NSE is very encouraging. This will give an opportunity to investors to invest in REITs and ultimately increase the volumes. This will also help in liquidity and better price discovery. REITs will also be included in the Nifty index and this will increase the scope of investors. According to the existing rules, only those stocks can be included in the Nifty index, which are traded on the exchange.
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Total assets of REITs and InVITs Rs 1.64 lakh crore
REITs include real estate assets. A large part of this goes to those real estate assets, which have already been given on lease. InvITs include infrastructure companies like highways, power transmission. As of March 31, there were 15 InvITs and four REITs registered in the country. Of these, six are registered with the stock exchanges. REIT and InVIT together have raised an investment of 55 thousand crore rupees in 2020-21. Now their total assets have been Rs 1.64 lakh crore.