update

Sebi clears REIT,InvIT norms to tap Rs 100000cr investments 

      

      Paving the way for Rs 1 lakh crore fund inflows from foreign and domestic investors, Sebi on Sunday cleared new norms for setting up and listing of Real Estate and Infrastructure Investment Trusts. 
     The new guidelines, which herald a new investment avenue in India on the lines of one in developed markets like the US, UK, Japan, Hong Kong and Singapore, would allow trading in units of REITs and InvITs like any other security on stock exchanges.
      The norms were cleared by Sebi's board at a meeting, which was also addressed by Finance Minister Arun Jaitley, and takes forward the government's proposals in this regard as outlined in the Union Budget presented last month.
      In his budget speech, Jaitley had announced significant tax incentives for these products and the same have been incorporated in the new norms, which are expected to come into force in a month or two after necessary notifications.
     However, small investors would have to wait for some time before they are allowed to invest in these new products, as minimum investment amount for REITs has been fixed at Rs 2 lakh and at Rs 10 lakh for InvITs for now, given the complex nature and potential risks associated with them.