It was back in 2006 that SEBI had cleared the deck for the launch of real estate mutual funds (REMFs) as means to enable retail investors to take advantage of the enhancement in Indian property prices. For almost two years, there were no concrete steps taken to promulgate regulations for the establishment of REMFs. However, on April 25, 2008, SEBI announced amendments to the SEBI (Mutual Funds)...
Tax Benefits for REITs Likely
An earlier post on this blog had stated that the success of REITs in India would depend upon the availability of tax benefits to the REIT vehicle in the form of a tax pass-through. The Economic Times reports that SEBI has made out a case to the Government seeking that REITs be taxed in the same manner as mutual funds. The news report states: “The income-tax law now provides for a pass-through...
REITs on the Anvil
Real estate investment trusts (REITs) are similar to mutual funds. However, unlike mutual funds that usually hold securities, the underlying assets held by REITs are constituted by real estate properties. Investors in REITs can participate in returns from these real estate investments. The last couple of years have seen a boom in the real estate sector, and several Indian real estate companies...
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