Sebi revives plans for Real Estate Investment Trusts

The move is aimed at allowing investors to buy and sell units of REITs and providing them an investment vehicle for the real estate sector, similar to mutual fund and Exchange Traded Fund structures for stocks, bonds and other securities, a senior official said.

However, Sebi is initially considering restricting the investments in REITs to only foreign funds, domestic institutional investors and HNIs given the higher level of risks associated with the real estate sector, the official said, adding that small retail investors could be allowed at a later stage.
The move is likely to help channelise investor interest towards REITs, while leaving the physical real estate market (comprising of housing units and office spaces) for the end users -- thus helping the market reach a pricing level based on real demand and supply metrics.
As per the proposal being considered, REITs can issue units of their investment schemes through a public offer and list them thereafter on a stock exchange in a way similar to the issuance and listing of shares during an IPO.
Thereafter, the units can be traded on the stock exchange platform just like shares.
The money collected by the REIT through the public offer can be used for development of real estate projects as per its stated objective disclosed in the offer document.
Also, the scheme would need to be terminated after sale of the project developed with investors' money, and the proceeds would need to be distributed proportionately to the unit holders.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE