Mutual
funds can now invest in REITs, InvITs: SEBI
To make
real estate and infrastructure investment trusts more attractive for investors,
regulator Sebi has notified norms allowing mutual funds to invest their money
in such entities.
The move
comes after SEBI in its board meeting last month permitted mutual funds to
invest in real estate investment trusts (REITs) and infrastructure investment trusts
(InvITs).
A mutual
fund is permitted to invest only up to 5% of its net asset value in units of a
single issuer of alternative securities. The maximum allowed investment in
alternative instruments by a single fund will be capped at 10%. The cap will not
be applicable in the case of index fund or sector- or industry-specific scheme.
“A mutual
fund may invest in the units of REITs and InvITs... No mutual fund under all
its schemes shall own more than 10 per cent of units issued by a single issuer
of REIT and InvIT,” SEBI said in a notification dated 15 February, 2017.
The move is
part of SEBI’s effort to get more number of investors into REITs and InvITs.
Both REITs and InvITs are expected to help garner billions of dollars into the
country’s real estate and infrastructure segments.
No comments:
Post a Comment