Sebi's decision to allow setting up of Real Estate Investment Trusts (REITs) is expected to go a long way in reviving the core sector of the economy, including the vital cement and steel sectors, a senior official of the market regulator said on Saturday.
Addressing a conference organised by CII , Ananta Barua, Executive Director, Sebi said, "the Real Estate Investment Trust is a concept that has been prevailing around the world in different forms. The entity should have minimum capitalisation of Rs 500 crore."
"Initially, we were planning to put the minimum capital base of Rs 1,000 crore. However, after a series of discussions, we decided to bring it down to Rs 500 crore", he said.
He said the Trust could invest in multiple properties and function on the lines of Mutual funds. Investors could pick up units with a minimum face value of Rs 1 lakh. These units would be listed on stock exchanges and traded like stocks or mutual funds.
