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Hybrid security refers to a financial instrument that combines characteristics of both debt and equity. Essentially, it's a security that blends the features of bonds (debt) and stocks (equity).

FPIs are allowed to invest in below mentioned hybrid Securities.

  • Units of Real Estate Investment Trusts (REITs)
  • Units of Infrastructure Investment Trusts (InvITs)
  • Units issued by CategoryIII Alternative Investment Funds (AIFs)