Reits, InvITs, muni-bonds could grow higher than other funding instruments: Buch

Real estate investment trusts, infrastructure investment trusts, and municipal bonds are set for robust growth over the next decade and can surpass the equity and debt markets in the quantum of money being mopped up, Securities and Exchange Board chairperson Madhabi Puri Buch has said. She said the overall fundraising from the capital markets, including through equity and debt issuances, has crossed Rs 3.31 trillion in the first three quarters of the fiscal and is on course to grow 21 percent to scale to Rs 14.27 trillion by end March, from the Rs 11.8 trillion of the previous fiscal. “Growth is so substantial that it could exceed the capital pumped in from equity and debt markets,” Buch said, adding “if we leverage the assets we have in this country—both existing and those yet to be built—Reits and Invits could see their capital double over the next decade.” On the overall fundraising this fiscal, she said, “overall if we project for Q4, we will probably end somewhere like over Rs 14.27 trillion for the year in capital raising, both equity and debt." Buch said money raised by real estate investments trusts, infrastructure investment trusts and municipal bonds has a very small contribution to the overall capital raising at around Rs 10,000 crore in the first three quarters of FY25.