New Delhi, Nov. 28 -- Any mutual fund or specialized investment fund (SIF) investment in real estate investment trusts (REITs) will be considered an investment in equity-related instruments starting 1 January 2026.

The Securities and Exchange Board of India (Sebi), in a circular on Friday, however, exempted existing investments in REITs as of 31 December 2025 from the new rules.

"Asset management companies (AMCs) are encouraged to make efforts to divest REITs from respective portfolios of debt schemes considering the market conditions, liquidity and interest of investors," according to the circular.

The market regulator on 12 September reclassified REITs, earlier tagged as hybrid instruments, as equity-related instruments, while retain...