Real Estate Current Affairs

SEBI allows REITs, InvITs to raise funds via debt securities

Capital markets regulator SEBI (Securities and Exchange Board of India) amended guidelines of Real Estate Investment Trusts (Reits) and Infrastructure Investments Trusts (InvITs) in order to broaden scope of fund raising by such instruments.

Amended Guidelines

It allows REITs and InvITs to raise capital by issuing debt securities. REITs now require to have 50% stake in holding company marginally less from earlier limit of 51%. Like InvITs, REITs are now allowed to invest in single assets and can also lend to an underlying holding company. ​REITs have been allowed to lend to an underlying holding company or a special purpose vehicle (SPV).

Real Estate Investment Trusts (Reits)

Reits are investment vehicles that can be used by real estate players to attract private investment, while investors (both retail and institutional) can gain dividends generated from income-producing real estate assets like office buildings, shopping malls, etc. They are similar to mutual funds which provide opportunity to invest in equity stocks, whereas REITs allow one to invest in income-generating real estate assets.

In REITs, most of the earnings via sale / rent of such investments are distributed to its shareholders. Its purpose is to improve the liquidity position of Real Estate developers and give a secure avenue to investors to invest in long term. REITs are only for completed projects not the under-construction projects. They are primarily for commercial projects and mainly serve as an alternative investment.

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Demarcation of ESZ around Okhla Bird Sanctuary completed

Union Government has completed the demarcation of eco-sensitive zone (ESZ) around the Okhla Bird Sanctuary in the national capital region (NCR) of Delhi.

It was announced by Union Environment Minister Prakash Javadekar mentioning that notification in this regard will be issued soon.

Earlier, National Green Tribunal (NGT) had passed an order barring any infrastructure development within 10 kilometre radius from the sanctuary’s boundary. This order did not allow the people to get occupancy certificates who had booked flats in this protected area.

In order solve this problem NGT had directed the Union Ministry of Environment to issue the final notification on ESZ demarcation around the sanctuary.

Once the final demarcation notification is issued by the government, the home buyers outside the ESZ will be allowed to get occupancy certificates of their flats which were pending due to NGT’s order.

About Okhla Bird Sanctuary

  • Okhla Bird Sanctuary is situated in Noida Gautam Buddh Nagar district on Delhi-Uttar Pradesh state border.
  • Location: Okhla barrage over Yamuna River at the point where the river enters Uttar Pradesh.
  • It was designated a bird sanctuary in 1990 with an area of 3.5 square kilometres by the Uttar Pradesh Government of under the Wildlife Protection Act, 1972.
  • Okhla Bird Sanctuary is known as a haven for over 300 bird species, especially waterbirds.

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