The Reserve Bank of India on 8th October 2021, has permitted foreign portfolio investors (FPIs) to invest in debt securities issued by InvITs and REITs. FPIs can acquire debt securities issued by InvITs and REITs under the Medium-Term Framework (MTF) or the Voluntary Retention Route (VRR). Such investments shall be reckoned within the limits and shall be subject to the terms and conditions for investments by FPIs in debt securities under the respective regulations of MTF and VRR.
The union budget 2021-2022 announced that debt financing of Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) by Foreign Portfolio Investors (FPIs) will be permitted by amending the applicable legislation. Accordingly, it has been decided to permit FPIs to invest in debt securities issued by InvITs and REITs.
