The benchmark realty index on BSE and NSE rose over 1 per cent on Monday after Sebi on Friday approved an easier set of norms for REITs, proposing to allow real-estate investment trusts to invest more in assets under construction.
At 11.40 am, NSE Reatly index was trading 1.33 per cent up at 194.50. Stocks of Phoenix Mills Ltd, DLF Ltd and Sobha Ltd gained 3.33 per cent, 3.20 per cent and 0.69 per cent to Rs 138.75, Rs 331.75 and Rs 320.50, respectively, in trade so far. NSE Nifty was trading 24.25 points up at 8,194.45.
At 11.42 am, BSE Realty index was trading 1.44 per cent up at 1497.69. Sensex was trading 90.85 points up at 26,716.76 during the same time.
The board has cleared proposals to remove restrictions on REITs relating to investment in the Special Purpose Vehicle (SPV) structures, while the norms relating to related party transactions would also be eased.
Also, the REITs would be allowed to invest up to 20 per cent investment by REITs in under-construction projects, up from a maximum of 10 per cent permitted currently.
Relaxations would be made to provisions relating to compliance of minimum public holding norms, as also for investments by the associate entities of the trustees.