Charge of the REITs- Budget 2014 promises
Units are offered to the public by the Real Estate Investment Trust (REIT), which means REITs in retrospect would be catalysts that help raise funds from sources such as investors. It would be these investors or angels that would bring about real estate promising to dole out funds and the same would then be distributed as profitable income amongst the angels that have made an investment, says a source.
Income producing units would be managed and kept ownership off by the REITs typically, however, the budget 2014 says it is in the best interest of the nation that they would have to distribute the profitable income of around ninety percent, in the name of dividends amongst those who hold its units.
REITs as a concept is not new-age as such, prevalent and developed countries such as Australia, Germany, UK, US and some nations of the “Asian” continent too, for example, Hong Kong, Japan and Singapore have dwelt and dealt in them. however, because of the limitations on social structuring with regard to draft limitations, such deals and regulations were sent to the abyss, never announced or finalized.
It was last year in the month of September, when a new set of REIT drafts were announced for the public to ponder upon. These are new regulations that synchronize with the global standards of regulations, and would have the intentions clearly stated and announced too. SEBI has given its comments on relevant terms for the same, and budget 2014 therefore would have REIT regulations talking about itself soon.
Source: The Economic Times
Budget 2014, Budget 2014 Real estate, interim budget 2014, real estate investment trust india, Real Estate Investment Trusts
