Small realtors hopeful of new Sebi regulations
Small builders that have been facing funds crunch for many months now on the backdrop of slowdown in real estate market.
They are banking on capital market regulator Securities and exchange board of India’s (Sebi) new Alternative Investment Funds regulations to ease access to money.
Over the past several months, banks have cut down on lending to smaller real estate players. Add to that, home sales have slowed down, forcing the small realtors to stall many projects. However, with the new regulation, large funds will be raised from domestic HNIs, which is ideal for small and medium developers who offer good opportunity for these domestic funds.
The regulation mandates that the minimum investment size has to be . 1 crore from an HNI investor, and promoters of the fund will now have to contribute at least 2.5 per cent of the corpus or . 5 crore.
alternative investment funds, high net worth individuals (HNIs), Home sales, Real Estate India, Real Estate Sector, Real-estate market, Sebi regulations, Securities and exchange board of India(Sebi), Small builders, small realtors
