Realty stocks gain as Cabinet approves Real Estate Bill

By: |
New Delhi | Updated: December 10, 2015 4:42:33 PM

In the afternoon trade, the BSE Real Estate index was up 1.44 per cent at 1,296.70 (at 1.12 pm).

Most of real estate stocks got a boost on Thursday after market sentiment turned upbeat with the Union Cabinet approval to the revised Real Estate (Regulation and Development) Bill, 2015. (Photo: Reuters)Real estate stocks got a boost on Thursday after sentiment turned upbeat with the Union Cabinet approval to the revised Real Estate Bill, 2015. (Photo: Reuters)

Most of real estate stocks got a boost on Thursday after sentiment turned upbeat with the Union Cabinet approval to the revised Real Estate (Regulation and Development) Bill, 2015. The passage of the Bill, which covers both residential and commercial real estate, could lead to a re-rating of the domestic real estate sector.

The BSE Realty index jumped 1.63 per cent to 1,287 on Thursday. Realty majors such as Prestige Estates gained 4.43 per cent to Rs 212. It was followed by Phoenix (up 4.28 per cent), Unitech (up 3.26 per cent), NBCC (up 2.84 per cent) and Ashiana Housing (up 1.99 per cent).

The Union Cabinet on Wednesday approved various amendments to the contentious Real Estate bill, introducing provisions for depositing 70 per cent of the project cost by builders into an escrow account and punishment for violations of the proposed law, meeting key opposition demands.

Reaching out to the opposition, the Cabinet, in its meeting chaired by Prime Minister Narendra Modi, approved a string of amendments to the Real Estate (Regulation and Development) Bill, 2015, aimed at protecting the interest of the buyers and promoting investments in the sector while ensuring transparency.

(With agency inputs)

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition