New Delhi, Aug 10:
To facilitate greater foreign and domestic investments in real estate and infrastructure, the Securities and Exchange Board of India (Sebi) Sunday cleared norms for the creation and listing of business trusts in these sectors.
“The proposals with respect to real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) were cleared by the board,” Sebi Chairman U.K. Sinha told media persons after the meeting, that was also addressed by Finance Minister Arun Jaitley.
Jaitley had in his maiden budget presentation last month said REITs, which have been successfully used for pooling of investment in several countries, would be granted necessary tax incentives, as also InvITs.
The government is keen to push investments into infrastructure and construction sectors in order to revive the economy and generate jobs.
Through InvITs, the government aims to raise funds to meet infrastructure investment requirements of Rs.65 lakh crore for the 12th Five Year Plan (2012-17).
The new guidelines would allow listing and trading of REITs and InvITs on the stock exchanges.
The changed norms would also allow foreign investment into the units of REITs and InvITs at the time of public offer (IPO) and for acquisition from secondary markets, as also permit insurance companies, pension funds and provident funds to invest.