SEBI pushes establishing real estate investment trust body

By Accommodation Times News Service

The Securities and Exchange Board of India (SEBI) is in talks with the realty industry various bodies to form a body Real Estate Investment Trust (REIT) to be introduced in the country.  This attempt is SEBI’s third one as previously two times the idea was called off.  In 2008 SEBI put out the draft regulations for REITs but it was withdrawn, which made SEBI allowed asset management companies to launch real estate mutual funds, but this too was seem to be interested.

Executive Director, Ananta Barua said, we are engaged with Asia Pacific Real Estate Association and other industry bodies over REITs. Adding further he said, there are 3-4 top concerns to whether in which and how REIT should be structured. Whether it will come under Collective Investment Scheme regulations or Alternative Investment Fund regulations. He also said that if REIT is made available to retail investors then the structure will be totally different. However he refused to give any timeline for the implementation.

The major hurdle in the implementation is the taxation regime, which the industry is asking should be made conducive for the model to successfully go through this time around.

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