Mumbai, Oct. 22 -- Market regulator SEBI is exploring a proposal to allow Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) to invest in third-party projects subject to certain conditions, to address supply constraints and expand investment opportunities in the sector.

Addressing the third edition of FICCI's Real Estate Investment Summit in Mumbai on Thursday, Maninder Cheema, Executive Director, Securities and Exchange Board of India (SEBI), said developer-sponsors typically have a limited pipeline of projects available for transfer to these investment trusts.

"Normally, assets come into REITs from a sponsor who is usually a developer, and the pipeline of projects may be limited," Cheema said. "They ar...