 "Sebi notifies norms for REIT, InvIT regulations")
Market regulator Securities and Exchange Board of India (Sebi) on Friday notified the regulations on real estate and infrastructure investment trusts-REIT and InvIT.
The move enables the cash-strapped real estate and infrastructure sectors raise capital by liquidating their assets through these globally-popular financial instruments.
Last month, Sebi's board had cleared the regulations governing REIT and InVIT.
In the final norms, which were notified today, the markets regulator has allowed foreign investor to invest in these instruments subject to the Reserve Bank of India guidelines.
The norms also allow REIT to have multiple sponsors but the minimum networth of each has to be Rs 20 crore and the cumulative networth of the sponsors cannot be less than Rs 100 crore.
Market experts say even after notification of the REIT norms, it will take anywhere between 6 and 12 months for the launch of the first REIT.