The Reserve Bank of India’s decision to allow foreign portfolio investors (FPIs) to invest in debt securities issued by real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) is expected to provide much-needed patient capital and liquidity to the new asset class. Finance minister Nirmala Sitharaman, in the union budget 2019, had allowed FPIs to invest in REITs and InvITs, but the enabling was yet to take place. The central bank has now amended the Foreign Exchange Management (Debt Instrument) Regulations, 2021 to allow such investments. “Globally, institutional investors are among the largest investors in business trust debt, as the credit and risk profile meet their liability management needs. RBI’s notification on enabling FPIs to invest in debt securities of REITs and InvITs will open up the fundraising avenues as REITs and InvITs have a constant requirement of patient capital for acquisition and to scale their portfolio up,” said Sigrid Zialcita, chief executive of the Asia-Pacific Real Estate Association.