New SEBI norms on REITs likely to be finalized by October
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Pulling out all stops as far as Real Estate Investment Trust (REIT) is concerned, Security and Exchange Board of India (SEBI) has set up a dedicated committee on REITs to address concerns of interested players.
Developers DLF, K Raheja and Embassy have been having weekly consultations with the committee to address their grievances. The regulator is doing all it can to ease the concerns about inadequate public interest in REIT.
The committee has also proposed to remove minor regulatory hurdles on REIT and may allow up to 5 sponsors for REIT. Furthermore, SEBI may allow hotels to be listed and REIT may be granted to invest in holding companies with rent-yielding projectss via special purpose vehicle (SPVs).
Not just this, the regulator body may also allow 20 percent of REIT capital to be spent on under construction projects and is awaiting public response on new REIT norms by August 7.
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