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Real estate mutual funds will be regulated for investment

Comments(4) Sub Category:Realty News,Uncategorized Posted On: Apr 17, 2012

It will be mandatory for a real estate mutual fund to invest at least 75 % of the scheme`s net assets in real estate companies and related securities.

In that amount a minimum of 35 % was to be invested directly into real estate projects in India.

The investment funds also will not be allowed to invest more than 30 % in a single city, or more than 15 % in a single real-estate project.

More than 25 % of the total issued capital can not be invested to any unlisted company. These realty mutual funds are also required to have mandatory listing on the stock exchanges.

In spite of the permission from the regulator, no fund house can come forward to launch a real estate fund.

These decisions were taken by the Securities and Exchange Board of India to increase the transparency and clarity of the investments in the real estate projects in India.

More related stories:

Indian realty market looking for secondary PE Deals

Indian realtors seek new funds

Source : MyIris

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