Would REITs be allowed an entry- The realtors wait for an answer
The much needed real estate investment trusts (REITs) are almost here for realtors to seek help from, but the question is, would the REITs be allowed an entry into the nations markets? This is a move which when allowed would be great for the economy, say sources. A move that would bring in the much-wanted transparency and liquidity at the end of the day, a boon for the nation’s real-estate scenario as many experts opine.
Public trusts are created by the listed companies, REITs. REITs are known to invest in retail assets and leased offices, and can also help with income generation and distribution too, helping stakeholders with dividends for profit in the long run. The trusts can be made available to the public who can now buy it’s units as well.
The new government is believed to have shown very keen interest on such entities entering the markets in the nation, and issues or hurdles are few to solve, infact none. Chairman, Securities & Exchange Board of India (SEBI), Mr. U.K. Sinha opines such regulations on REITs are great however Team Modi needs more clarification on the same, especially when one talks about tax treatments that are in the pipeline.
The regulations were to be drafted way back in 2008 with regard to REITs, however because of a slump in global economy it wasn’t possible. It is 2014 now and we shall wait and watch!!
Source – The Hindu
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