Sebi broadens strategic investor definition for REITs, InvITs

• Sebi amended norms for REITs and InvITs to broaden the definition of "strategic investor."
• The change aims to widen investor participation, attract capital, and improve ease of doing business for these trusts.
• The new definition allows Qualified Institutional Buyers (QIBs) to be strategic investors, including pension funds, provident funds, and insurance funds previously excluded.
• This expansion includes public financial institutions, AIFs, state industrial development corporations, family trusts, and certain NBFCs.
• Separately, Sebi reclassified REITs as equity-related instruments, effective January 1, 2026, to boost mutual fund and specialized investment fund participation.

Why It Matters: This change helps REITs/InvITs attract more capital from diverse institutional investors.