BSE sets up advisory group on REITs
The Bombay Stock Exchange (BSE) has set up an advisory group on REITs (Real Estate Investment Trusts), which seeks to attract long-term funds to the investment-deficient realty sector from both foreign as well as domestic investors. The Budget 2014-15 also offers incentives like exemption from long-term capital gains tax to promote REITs, which could be listed on the bourses like company shares and permits retail and institutional investors to trade in those securities.
The BSE has decided to make an 11-member advisory group of experts from real estate, securities market participants like merchant bankers, legal professionals and consultants in real estate to orderly help develop the REITs and to make it popular among investors and advise them newly proposed framework on REITs.
As per experts, REITs can attract humungous $10 billion foreign funds into the real estate sector.