Sebi: New norms to help entities take REIT exposure with minimum Rs 2 lakh
The Sebi board has recently cleared new norms for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
Sebi Chairman U K Sinha has said in a recent statement that, under the new norms, entities with at least Rs 2 lakh investment will be able to benefit from returns from completed realty projects.
With the creation of REITs by Sebi underscoring the clearance of a long-standing demand of the realty industry, the regulator will soon issues final regulations with regard to the new norms, which will likely take effect in a couple of months — most probably by October.
In reference to the new REIT norms, Sinha said that the idea behind the regulations is that investors who can invest an amount of minimum Rs. 2 lakh can avail the advantage of the income from the completed projects.
Noting that REIT is chiefly with regard to “completed projects, revenue generating projects,” Sinha said: “The government in the Finance Bill has already provided for tax treatment for REITs and InvITs. So with those tax treatments in place and Sebi regulations in place we can hope that there will be some progress in the real estate market and in the infrastructure market.”
Source – Financial Chronicle
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