economics medium True/False

Real Estate Investment Trusts (REITs) in India are regulated by the RBI and are restricted to investing only in under-construction, high-risk residential housing projects.

  1. True
  2. False

Answer: False

REITs are regulated by the Securities and Exchange Board of India (SEBI), not the RBI. Furthermore, SEBI guidelines mandate that REITs must invest at least 80% of their assets in completed, revenue-generating commercial real estate (like office parks and malls), strictly limiting their exposure to risky, under-construction projects to protect retail investors.

Topic Indian Economy - Infrastructure
Exam Relevance Banking, UPSC Prelims, SSC
More economics Questions Back to all questions