Market regulator SEBI on Thursday proposed to widen investment opportunities for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) in liquid mutual fund schemes.Currently, these trusts can invest only in liquid funds with the highest credit risk ratings, limiting their options.These measures are part of SEBI’s effort to make it easier to do business for REITs and InvITs. “Sebi is examining changes to provide greater investment flexibility for REITs and InvITs while maintaining appropriate prudential safeguards,” the regulator said as quoted by PTI.In the consultation document, Sebi suggested allowing InvITs to retain stake in special purpose vehicles (SPVs) even after the concession agreement expires. The regulator said some SPVs may need to continue to operate to meet legal, contractual, tax or litigation obligations.To support this, SEBI proposed to revise the definition of SPV with conditions such as specified exit or reinvestment program and better disclosure requirements at both the InvIT and SPV level.Additionally, the regulator recommended bringing the rules for private InvITs in line with the rules applicable to public InvITs involving greenfield projects. The changes will “facilitate privately listed InvITs to invest in pure greenfield projects up to 10 per cent of the value of the InvIT asset.”SEBI has also proposed to increase the use of fresh borrowings for InvITs when net debt exceeds 49 per cent of their assets.The regulator has asked stakeholders to respond to these proposals by February 26.