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SEBI approved new rules, same day trade settlement will also be implemented in the stock market from March
Investing in property will be easy: SEBI approved new rules, same day trade settlement will also be implemented in the stock market from March
Market regulator Securities Exchange Board of India i.e. SEBI Board has approved amendments to the Real Estate Investment Trust Regulation (REIT) 2014. This approval has been given to create a new regulatory framework for small and medium REITs. SEBI Chief Madhabi Puri Buch gave this information in the press conference after the SEBI board meeting on Saturday.
After the new rules, to launch REITs, the company should have a minimum asset value of Rs 50 crore. Earlier it was Rs 500 crore. REITs are a company/trust that owns and manages income-generating real estate properties. Investors can buy shares in REITs, and in return, they get a share of the rental income these properties generate.
Simply put, REITs give investors the opportunity to invest and earn money on real estate without owning the physical property. REITs are listed on stock exchanges, making it easier for investors to buy and sell their shares.
REITs raise money from investors and use that money to buy income-generating properties. These properties are then leased to tenants, and the rental income is distributed to investors as dividends. REITs are required to distribute at least 90% of their rental income to investors.
