About REITs

Real Estate Investment Trusts (REITs) in India are SEBI-regulated trusts that pool money from many investors to own and manage income-generating commercial real estate — allowing individuals to earn rental-linked income without buying physical property directly.

How REITs work in India

Regulation: Governed by SEBI under dedicated REIT regulations.
Asset allocation: Must invest at least 80% of assets in completed, income-producing properties (offices, malls, warehouses, etc.).
Income distribution: Required to distribute at least 90% of net distributable cash flow to unit-holders.
Trading: Listed on the NSE/BSE; units can be bought and sold like shares through a Demat account.

Risk note: REIT unit prices and distributions move with property income and market conditions. They are not fixed-income instruments and principal is not guaranteed.