SEBI to push tax benefits on REITs, Infrastructure Bonds
The Securities and Exchange Board of India (SEBI) has requested the government to provide a clear picture on tax benefits for the latest products like REITs (Real Estate Investment Trusts) and Infrastructure Investment Trusts. This is expected to boost the capital markets.
Regulator SEBI is soon to finalise the norms for REITs once there is clarity on taxation, as told by U K Sinha, the Chairman of SEBI. He also voiced his thoughts about how they want these trusts to obtain the tax-pass-through status. Once the withholding taxation issues are resolved for each product, SEBI will finish framing the new rules for Infrastructure Investment Trusts.
This will soon help people to invest in specific products that are related to real estate and infrastructure projects, with necessary precautions. Corporates can further benefit from this by raising the funds needed for their upcoming or prevailing projects.
Sinha also said that the necessary infrastructure to expand corporate bonds is all set and ready with the regulations simplified. They are working on expanding the base of these bonds. He also expressed the importance of encouraging the listing of small and medium enterprises, so they can benefit from the capital market as well.
Source: The Economic Times
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