New Delhi: Mutual funds will be allowed to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs), the market regulator said on Saturday, a move aimed at boosting investor interest in such alternative investments.
- Fund won't be able to invest over 5% of net asset value a single issuer
- Move aimed at boosting investor interest in alternative investments
- REITs or InvITs are listed entities that invest in rent-yielding assets
The Securities and Exchange Board of India (SEBI) had been working on easing regulations on REITs and InvITs to woo more investors to India's capital-starved property sector.
A fund would not be able to invest more than 5 percent of its net asset value in units of a single issuer of REIT or InvITs, the regulator said in a statement.
The maximum allowed investment in the alternative instruments by a single fund would be capped at 10 percent, it added.
REITs or InvITs are listed entities that invest in rent-yielding assets and distribute most of their income to shareholders as dividends.
The decisions were taken during SEBI's board meeting in Jaipur.
© Thomson Reuters 2017