NSE Indices rolls out India’s first REITs, InvITs index

Source: The post is based on the article “NSE Indices rolls out India’s first REITs, InvITs index” published in Livemint on 12th April 2023

What is the News?

NSE Indices Ltd has launched the country’s first-ever Real Estate Investment Trusts and Infrastructure Investment Trusts index—Nifty REITs and InvITs Index.

The index aims to track the performance of REITs and InvITs that are publicly listed and traded on the NSE.

What are real estate investment trusts (REIT) and Infrastructure Investment Trusts (InvITs)?

A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate.

Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.

Most REITs are publicly traded like stocks, which makes them highly liquid (unlike physical real estate investments).

InvITs are similar to REITs except that they use the pooled money to own and run functional infrastructure assets like highways, roads, pipelines, warehouses and power plants.

What are NSE Indices?

NSE Indices Limited was set up in 1998. It is a subsidiary of the National Stock Exchange of India.

It provides a variety of indices and index-related products and services to Indian capital markets.

It is based in Mumbai, Maharashtra.