Oct. 10 (Bloomberg) -- India’s stock market regulator plans to ease fundraising rules for property developers by allowing setting up of real estate investment trusts.
The Securities and Exchange Board of India is considering allowing developers to introduce real estate investment trusts, or REITs, that can raise money through initial public offerings, the regulator said in draft guidelines on its website today. The initial offer size must be at least 2.5 billion rupees ($41 million), according to the statement.
REITS will “enable retail money to be channelized into India’s realty sector through a regulated network,” Anshuman Magazine, Chairman of CB Richard Ellis South Asia Pvt., said in an e-mailed statement today. “The introduction of REITs in the long term would propel the sector, spurring capital inflows and bringing institutional credibility.”
To qualify for selling shares, REITs must have assets of at least 10 billion rupees, according to the guidelines.
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