Norms for REITs to be notified soon, says SEBI top official
Updated: Sep 20, 2014 02:12:21pm
New Delhi, Sept 20 (KNN) The Securities Exchange Board of India (SEBI) is in the final stages of drafting guidelines for real estate investment trusts (REITs) in India and it will be notified very shortly, a top SEBI official said.
"We will soon notify guidelines for REITs," said Executive Director, Investment Management Department of SEBI, Ananta Barua said while inaugurating a national conference on 'REITs-Opportunities and the way forward,' organized by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) here yesterday.
“SEBI has set up two committees that are looking into specifying guidelines for issues and similarly for listing of those units a separate committee has been set up,” said Barua.
"We are trying to deepen the market and also bringing more investment products so that investment can be channelized to meet the needs of the economy," he added.
He also informed that REITs to be introduced in India are mainly for commercial assets - office premises, industrial parks, IT parks, warehouses, apartments which are rental and not for residential properties.
The top SEBI official also said that REITs which are being compared with mutual funds are a totally different product; more similar to the IPO i.e. the equity shares as the asset would be there throughout their life.
He also informed that assets which can be put in should be completed assets i.e. investments which can be made should be in completed assets and not normally in under construction assets.
“This whole regime is based on disclosures and not on merits and as the SEBI we'll not go into whether this asset is good for REIT or not, here the parties will take the transactions as a lot of transparency has been given at all the levels, disclosure will be there,” said Barua.
He further said that before making these regulations SEBI had consulted the investors, not only in India but all over the world even the pension funds, sovereign wealth funds from many countries like SA, Qatar and others.
Earlier, in his address at the ASSOCHAM conference, managing director and chief executive officer of the Bombay Stock Exchange (BSE) said, “REITs gives us another asset class, it’s not a derivative for us derivatives are a good thing to do but investment is the only thing to do and REITs are basically in that category like SMEs.” (KNN Bureau)
"We will soon notify guidelines for REITs," said Executive Director, Investment Management Department of SEBI, Ananta Barua said while inaugurating a national conference on 'REITs-Opportunities and the way forward,' organized by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) here yesterday.
“SEBI has set up two committees that are looking into specifying guidelines for issues and similarly for listing of those units a separate committee has been set up,” said Barua.
"We are trying to deepen the market and also bringing more investment products so that investment can be channelized to meet the needs of the economy," he added.
He also informed that REITs to be introduced in India are mainly for commercial assets - office premises, industrial parks, IT parks, warehouses, apartments which are rental and not for residential properties.
The top SEBI official also said that REITs which are being compared with mutual funds are a totally different product; more similar to the IPO i.e. the equity shares as the asset would be there throughout their life.
He also informed that assets which can be put in should be completed assets i.e. investments which can be made should be in completed assets and not normally in under construction assets.
“This whole regime is based on disclosures and not on merits and as the SEBI we'll not go into whether this asset is good for REIT or not, here the parties will take the transactions as a lot of transparency has been given at all the levels, disclosure will be there,” said Barua.
He further said that before making these regulations SEBI had consulted the investors, not only in India but all over the world even the pension funds, sovereign wealth funds from many countries like SA, Qatar and others.
Earlier, in his address at the ASSOCHAM conference, managing director and chief executive officer of the Bombay Stock Exchange (BSE) said, “REITs gives us another asset class, it’s not a derivative for us derivatives are a good thing to do but investment is the only thing to do and REITs are basically in that category like SMEs.” (KNN Bureau)
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