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Sebi paves way for real estate funds

Sebi paves way for real estate funds
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First Published: Fri, Apr 25 2008. 04 48 PM IST
Updated: Fri, Apr 25 2008. 04 48 PM IST
By Reuters
Mumbai: India’s market regulator said on 25 April, it has allowed domestic asset managers to launch funds investing directly in real estate.
These funds shall be close-ended with units listed on stock exchanges, the Securities and Exchange Board of India (SEBI) said in a statement posted on its website, adding the net asset values of the funds must be made public every day.
Such schemes shall invest at least 35% of their funds directly in real estate assets and the rest in mortgage-backed securities and instruments of firms engaged in the sector, it added.
They can invest up to 25% of their corpus in other securities, according to the statement.
“Taken together, investments in real estate assets, real estate-related securities... shall not be less than 75% of the net assets of the scheme,” SEBI said.
The asset managers should get the assets valued every 90 days, it added.
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First Published: Fri, Apr 25 2008. 04 48 PM IST
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