The Securities and Exchange Board of India (Mutual Fund) Regulations, 1996, have been amended to permit mutual funds to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). [ihc-hide-content ihc_mb_type=”show” ihc_mb_who=”3″ ihc_mb_template=”2″ ]However, permission has been granted subject to the following restrictions:
- The mutual fund cannot own more than 11% of the units issued by a single issuer;
- The mutual fund cannot invest more than 10% of its net asset value in REIT and InvIT units;
- The mutual fund cannot invest more than 5% of its net asset value in REIT and InvIT units issued by a single issuer.
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