Subject: SEBI Circular – Framework for Issuance of Depository Receipts on Units of REITs | November 2, 2026

SEBI has issued Circular No. HO/17/11/19(7)2026-DDHS-RAC/I/24932/2026 dated November 2, 2026, laying down the framework for issuance of Depository Receipts (DRs) on units of REITs under Regulation 14(12A) of the SEBI (REIT) Regulations, 2014.

Key Highlights:

DRs are foreign currency denominated instruments, listed on international exchanges, backed by REIT units deposited with a domestic custodian.
Permissible jurisdictions are limited to IFSC – India International Exchange and NSE International Exchange.
Fresh issue of DRs requires prior unitholder approval by 75% of votes cast; exemptions apply for simultaneous initial listings and subsequent offerings within approved limits.
DR holders and their beneficial owners must not be India residents.
Manager must appoint a merchant banker to oversee compliance and submit a compliance report to its Board.
Units held for DR issuance will be treated as non-public unitholding for minimum public unitholding calculations.
Cross-border disclosures must be filed with the recognised stock exchange within 24 hours.
This circular is effective immediately.