Mumbai, Aug. 4 -- The Securities and Exchange Board of India (Sebi) has proposed allowing Real Estate Investment Trusts (Reits) and Infrastructure Investment Trusts (InvITs) to raise funds from foreign investors through depository receipts, widening access to global capital for India's investment market.

Depository receipts are instruments issued by a foreign depository that represent ownership of securities held in another country. In this case, units of Indian Reits and InvITs would remain backed by domestic assets, while foreign investors would be able to trade corresponding receipts in international markets and in foreign currency.

Although foreign investors are already permitted to invest in Reits and InvITs under the country's for...