NEW
DELHI: Indian mutual funds will be allowed to invest in real estate investment
trusts (REITs) and infrastructure investment trusts (InvITs), the market
regulator said on Saturday, a move aimed at boosting investor interest in such
alternative investments.
The Securities and
Exchange Board of India (SEBI) had been working on easing regulations on REITs
and InvITs to woo more investors to India’s capital-starved property sector.
A fund would not be able
to invest more than 5 percent of its net asset value in units of a single
issuer of REIT or InvITs, the regulator said in a statement.
The maximum allowed
investment in the alternative instruments by a single fund would be capped at
10 percent, it added.
REITs or InvITs are
listed entities that invest in rent-yielding assets and distribute most of
their income to shareholders as dividends.
The decisions were taken
during SEBI’s board meeting in western Indian city of Jaipur.
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