Securities and Exchange Board of India (Sebi) will soon initiate the process of formulating detailed guidelines on the Real Estate Infrastructure Trust (REIT) and finalise the guidelines on the much-awaited Real Estate Mutual Fund (REMF) and the Dedicated Infrastructure Fund (DIF). The regulator is also in talks with stock exchanges for the trading modalities of the newly introduced derivative products, M Damodaran, chairman, Sebi said.
Addressing a conference on the capital markets organised by CII, Damodaran said that Sebi has started the process to formulate guidelines on REITs.
?The consultations with professionals having expertise in REIT have commenced and we will soon write the first set of proposals,? he said.
Sebi is at the advanced stage for finalising the long pending Real Estate Mutual Fund (REMF). Both AMFI and ICAI are working on the modalities for the valuation of the REMF and how to calculate net asset value (NAV) of the fund.
He said that the regulator has also prepared a draft proposal on the Dedicated Infrastructure Fund (DIF). The regulator is also grappling with a question whether the fund should be introduced for the institutional investors for the first two years and later for the retail investors or both should participate in the fund from the launch of the fund itself.
With reference to Sebi?s new norms on Participatory Notes (P-Notes), Damodaran said, ?I am happy to say that in the last one month a large number of foreign investors have approached us and they want to invest directly in our markets.?
Damodaran spelt out several other plans of the regulator. Sebi is working on the development of the corporate bond market. The regulator is in consultation with the stock exchanges for the introduction of the recently announced derivative products.
With regard to Fast Track Security Issuance (FTSI), he said that nearly thirty large companies will be able to mop up money from the market under the FTSI in the first phase.