SEBI to allow investments in Real Estate investment trusts

In an attempt to brighten the some hope in real estate sector, SEBI has allowed REIT or Real Estate Investment Trusts in India.

Sachin Karpe feels this is a good step and will give a much awaited boost to the real estate sector. First draft of this regulation was submitted about 5 years back. REITs are a trust which invest money through real estate, informs Sachn Karpe. Somewhat like a mutual fund where the returns are distributed to unit holders. The only difference is that REITs will be open ended in the beginning.

REITs are very popular in US and Canada. Sachin Karpe feels that its advent in India will open new avenues for investments in India.

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