Tag: Real Estate
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Update: Relaxation of FDI Norms for Construction Development Sector
[Posted by Umakanth Varottil] [The following post is contributed by Bhushan Shah at Mansukhlal Hiralal & Company, Mumbai] The Union Cabinet on 29 October 2014 decided to amend the Foreign Direct Investment (FDI) policy in the construction sector, i.e. townships, housing and built-up infrastructure. The press release is available here. The key amendments are as…
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The Resurgence of REITs
[Posted by Umakanth Varottil] Normal 0 false false false EN-US JA X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”;} More than 5 years ago (in December 2007), SEBI had issued a consultation paper and draft regulations with a view…
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Lock-in for Real Estate FDI Clarified
[Posted by Umakanth Varottil] According to Press Note 2 of 2005 issued by the Department of Industrial Policy and Promotion, there are certain conditions for foreign investment in the real estate sector. The relevant conditions are as follows: i. Minimum capitalization of US$10 million for wholly owned subsidiaries and US$ 5 million for joint ventures…
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REMFs: The New Indian Real Estate Investment Opportunity
[Posted by Umakanth Varottil] 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…
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Tax Benefits for REITs Likely
[Posted by Umakanth Varottil] 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…
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REITs on the Anvil
[Posted by Umakanth Varottil] 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…