REITs, INVITs, Muni bonds offer high growth opportunities: Buch

Real Estate Investment Trusts (REITs), INVITs and Muni (Municipal) bonds have emerged as high growth areas for investment, Securities & Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch said on Wednesday.

Real Estate Investment Trusts (REITs), INVITs and Muni (Municipal) bonds have emerged as high growth areas for investment, Securities & Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch said on Wednesday.

“Within SEBI we have done a very simple exercise, sort of a back of the envelope exercise where we asked ourselves, how big can this market be? And we reached the conclusion that just as our equity market cap is about one time of the GDP, we believe that the total value of our REITs, INVITs and Muni bonds ecosystem can be another one time of GDP,” Ms. Buch said while addressing the SEBI-NISM Research Conference in Mumbai.

“So that is the opportunity for growth which is available to us as a nation,” she said adding the value of REITs, INVITs and Muni bonds would far exceed the value of goods and services produced by the corporate sector today.

She said fractional ownership of real estate and fractional ownership of infrastructure is where the strength of the country will lie.

She said SEBI as a regulator has ensured that the governance elements and the disclosure elements of these asset classes provide comfort and confidence to retail investors so that they can go and invest without any apprehensions.

“You can now, without worrying, you can think about investing in these products,” she said.

She said now youngsters are interested in what is going to be the high growth area of the future. “They want to know where the profits will be. So that they can position themselves at a time and place where they will have a tailwind to really help them grow as well,” she added.