New Delhi, Nov. 29 -- Sebi has released a new circular announcing the investment made by mutual funds and specialised investment funds in real estate investment trusts (REITs) to be reclassified as equity related instruments from 1 January 2026 onwards.

This is done to increase participation of mutual funds in REITs.

Starting January 01, 2026, any investment made by Mutual Funds and SIFs in REITs will be considered as investment in equity related instruments. The Sebi circular reads that InvITs will continue to be classified as hybrid instruments for the purpose of investments by Mutual Funds and SIFs.

The change in rule (classifying investment in REITs as equity) will not impact debt mutual funds. Existing investment in REITs held by ...