With a view to facilitate enhanced participation by Mutual Funds and Specialized Investment Funds (SIFs) in Real Estate Investment Trusts (REITs), SEBI has carried out amendments to SEBI Mutual Funds Regulations, for reclassification of REITs as equity related instruments. It has been decided that any investment made by Mutual Funds and SIFs in REITs shall be considered as investment in equity related instruments. Existing investment in REITs held by debt schemes of Mutual Funds and investment strategies of SIFs shall be grandfathered. However, AMCs are encouraged to make efforts to divest REITs from respective portfolios of debt schemes considering market conditions, liquidity and interest of investors.