Real estate stocks were trading higher on Friday on hopes that the capital market regulator Sebi will consider proposals for relaxed norms for REITs and an easier set of compliance rules for foreign fund managers keen to relocate to India.
Nifty Realty index closed 3.76 per cent up at 191.95. Real estate stocks such as Sobha ended 3.93 per cent up at Rs 317.00. Other majors such as HDIL, Unitech and Oberoi Realty settled the day 6.94 per cent, 15.31 per cent and 5.49 per cent up at Rs 102.50, Rs 5.65 and Rs 288.20, respectively. However, Indiabulls Real Estate ended 0.91 per cent down at Rs 692.50.
The 50-share index NSE Nifty closed 29.45 points up at 8,170.20
Among the changes, the regulator’s board is looking to examine a proposal to make Real Estate Investment Trusts (REITs) more attractive to investors by allowing them to invest a large portion of funds in under-construction assets, sources said.
Regarding REITs, Sebi plans to remove the restriction on the SPV (Special Purpose Vehicle) to invest in other SPVs holding the assets, which in turn would allow REITs to invest in a holding company owning stake in SPVs.
(With inputs from PTI)