NSE Indices launches India's first REITs and InvITs index with 6 Securities

NSE Indices is a subsidiary of the National Stock Exchange of India (NSE) that specializes in index development, maintenance, and dissemination. The company offers a wide range of indices that cover various asset classes, including equities, fixed income, and commodities.

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are investment vehicles that enable investors to invest in real estate and infrastructure projects, respectively. These investment trusts pool money from investors and use the funds to invest in income-generating assets such as commercial properties, toll roads, and power transmission lines. Investors receive returns in the form of dividends and capital appreciation. 

The NSE Indices has launched India's first REITs and InvITs index with six securities. The index is called the Nifty Realty Index, and it comprises six securities, including three REITs and three InvITs. The three REITs are Embassy REIT, Mindspace Business Parks REIT, and Brookfield India Real Estate Trust. The three InvITs are IRB Infrastructure Developers, IndiGrid Trust, and Sterlite Power Grid Ventures.

The launch of the Nifty Realty Index is significant for the Indian investment market as it provides investors with an easy way to track the performance of REITs and InvITs. These investment vehicles have gained popularity in India over the last few years, and the launch of this index is expected to further boost their popularity. Moreover, the index will also provide investors with a benchmark against which they can compare the performance of their investments in REITs and InvITs.

The launch of the Nifty Realty Index is expected to pave the way for the development of more indices in the Indian investment market. The NSE Indices has indicated that it plans to launch more indices that cover different asset classes, including fixed income and commodities. This is expected to provide investors with a wider range of investment options and help deepen the Indian capital market.