Shares of ten real estate companies saw mixed trend at 11:35 IST on BSE after the Lok Sabha yesterday, 15 March 2016, approved the Real Estate (Regulation and Development) Bill, 2016.
At 11:35 IST, the BSE Realty index was down 0.17% at 1,172.62. It outperformed the Sensex, which was down 133.36 points, or 0.54%, to 24,417.81.
DLF (up 0.69%), Omaxe (up 0.18%), Phoenix Mills (up 0.29%), Sobha (up 1.09%), and Oberoi Realty (up 0.53%) edged higher. Indiabulls Real Estate (down 1.21%), D B Realty (down 0.8%), Unitech (down 2.46%), Godrej Properties (down 0.26%) and Housing Development & Infrastructure (HDIL) (down 2.12%) declined.
The BSE Realty index had outperformed the market over the past one month till 15 March 2016, rising 6.87% compared with Sensex's 4.23% rise. The index had, however, underperformed the market in past one quarter, sliding 7.93% as against Sensex's 3.04% fall.
The Real Estate (Regulation and Development) Bill, 2016 requires project promoters to register their projects with the Regulatory Authorities disclosing project information, including details of promoter, schedule of implementation of the project, layout plan, land status, status of approvals, agreements along with details of real estate agents, contractors, architects, structural engineers etc. The Bill also provides for the creation of a single window system for ensuring time bound project approvals and clearances for timely completion of projects. The Bill has already been passed in the Rajya Sabha.
Meanwhile, stock market regulator Securities and Exchange Board of India (Sebi) has allowed foreign portfolio investors (FPIs) to invest in units of Real Estate Investment Trusts (REITs), InvIts (Infrastructure Investment Trusts) and Category-III Alternative Investment Funds (AIFs). To facilitate investments in REITs, the government proposed in the Union Budget 2016-17 that any distribution made out of income of SPV (special purpose vehicle) to the REITs and InvITs (Infrastructure Investment Trusts) having specified shareholding will not be subjected to Dividend Distribution Tax (DDT).
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