• SPVs (Special Purpose Vehicles) hold real estate or infra-assets.
• Trust owns controlling interest in SPVs and collects revenues (rent/toll).
• Revenues are distributed to unit holders as dividends/interest.
• Units of the trust trade on NSE/BSE, similar to equity shares.

1. Regulator: SEBI (Securities and Exchange Board of India)

• Regulated under SEBI REIT Regulations and SEBI InvIT Regulations.
• Regular disclosures on rental yield, occupancy, lease profile, asset valuation.
• Rating required by SEBI for public InvITs.
• Investment mandate ≥80% in completed and revenue-generating assets; up to 20% in under-construction or non-core assets.
• Minimum 90% of net distributable cash flows (NDCF) must be paid out semi-annually. 

2. Stock Exchanges: NSE & BSE

• Platforms for buying and selling listed trust units.
• Enable price discovery, liquidity, and real-time execution.

3. Depositories: NSDL & CDSL

• Enable holding of units in demat electronic form.
• Maintain and update investor holdings via Demat accounts.

• Sponsor: Sets up the trust and contributes at least 15% of the total units; typically a real estate or infrastructure developer.
• Trustee: SEBI-registered fiduciary; ensures legal and regulatory compliance; protects the interest of unitholders.
• Investment Manager: Responsible for decision-making, acquisition/disposal of assets, fund operations, and regulatory reporting.
• Project Manager: Handles day-to-day operations and maintenance of assets (mandatory for InvITs).
• Valuer: Independent, SEBI-registered professional who conducts periodic valuation of assets (twice a year for REITs, quarterly for InvITs); critical for fair NAV disclosure.
• Credit Rating Agency: Assigns ratings to the trust’s debt instruments or InvITs' performance; ratings aid investor risk assessment and are required for debt-raising or public listing.

• Interest Income: Taxable at slab rate under “Income from Other Sources”
• Dividend Income: Taxable at slab rate under "Income from Other Sources"
• Repayment of Capital / Amortisation: Not taxable at the time of receipt, but reduces cost of acquisition for capital gains calculation later

• Holding Period: ≤ 12 months
• Tax Rate: 20%

• Holding Period: > 12 months
• Tax Rate: 12.5% without indexation (on gains over ₹1.25 lakh)

• Schedule OS (Other Sources) in ITR should capture Interest and Dividend income from Investment Trusts.

• Schedule CG (Capital Gain) in ITR should capture capital gains from Investment Trusts.
• Capital repayment to be reduced from cost of acquisition while computing future gains.
• Use AIS for validating reported sale proceeds, and dividend income.

• Asset Management Company (AMC): Entity responsible for managing the assets and operations of a REIT or InvIT. More commonly referred to as Investment Manager in trust structures.
• Asset Under Management (AUM): The total market value of all assets managed by a REIT or InvIT.
• Capital Repayment: Part of the distribution from the trust representing return of invested capital, not income. It reduces the cost base for capital gains purposes.
• Distribution Yield: Percentage return from annual income distributions relative to the current market price of the unit. 
• Draft Offer Document (DOD): Preliminary filing submitted to SEBI before a public REIT/InvIT issue, containing financials, risk factors, and trust structure. 
• Gross Asset Value (GAV): Total value of the assets owned by a trust before deducting liabilities.
• InvIT (Infrastructure Investment Trust): A SEBI-regulated investment vehicle that owns and manages operational infrastructure projects (e.g. roads, power grids) and distributes income to unit holders.
• Independent Valuer: SEBI-registered professional who conducts regular valuation of trust assets. Mandatory for NAV disclosures and fairness checks.
• Investment Manager: Entity responsible for making investment decisions, operating the trust, and ensuring compliance with SEBI regulations.
• Initial Public Offer (IPO): The first time units of a REIT/InvIT are offered to public investors on a stock exchange. 
• Minimum Public Float: The minimum % of trust units that must be held by public investors as per SEBI regulations (generally 25%). 
• NAV (Net Asset Value): The fair value of the trust's assets minus liabilities, divided by the number of outstanding units.
• NDCF (Net Distributable Cash Flow): The total cash available for distribution to unitholders after all operating and financial expenses.
• Occupancy Rate: In REITs, the percentage of total leasable space that is currently leased to tenants.
• REIT (Real Estate Investment Trust): A trust that owns and operates income-producing commercial real estate assets such as office parks, malls, and warehouses. 
• SM REIT (Small and Medium REIT): A smaller REIT format introduced by SEBI for real estate assets between ₹50 crore and ₹499 crore. Designed to democratize access to real estate investments.
• Sponsor: Entity (often a developer or infrastructure company) that establishes the trust and contributes initial assets. Must hold a minimum sponsor stake for a defined period.
• SPV (Special Purpose Vehicle): A subsidiary company that owns and operates the individual assets under a trust. Trusts typically own controlling interest in SPVs.
• Toll Revenues: In InvITs, income generated from operational road or highway projects, which flows to the trust for distribution.
• WALE (Weighted Average Lease Expiry): The average lease tenure left on the REIT’s portfolio, weighted by rental income. A longer WALE suggests stability in income streams.