Securities and Exchange Board of India (SEBI) approved setting up of the much awaited real estate investment trusts (REITs) that permits real estate funds to invest in completed and revenue-generating real estate. This move will provide a new source of funding for cash-strapped real estate industry.
SEBI said that the new norms would help entities with at least Rs2 lakh investment to earn from completed real estate projects. The new norms for REITs, as also for Infrastructure Investment Trusts (InvITs), were cleared by SEBI board. Final notifications would soon be issued to make the norms effective.