Sebi market regulatory today initiated to start a different frame work for Infrastructure Investment Trusts by looking to attract more investments into infrastructure sector.
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Providing draft standard for Infrastructure Investment Trusts (InvITS), Sebi told the latest framework can be by getting these new trusts under REIT model or can be on the lines of Mutual fund, a famous tool for increasing funds in the real estate market, or having a whole set of different norms.
The SEBI has obtained varied suggestion to come up with a framework for InvITS. The regulator is analyzing a structure which would provide an extra framework based on the suggestion received for investing in infrastructure of the country.
Sebi says Infrastructure is the foundation of development of any Country, and India requires around Rs 65 lakh crore for investing in Infrastructure sector during 2012-2017.
As per the draft norms & consultation paper provided by the regulatory, under the provision of the Indian Trusts Act 1882, InvITS shall be set up as a trust.
It shall have parties involving Sponsor, Independent engineers, Trustee, Project managers etc.
Sebi prescribes; through Initial Public offer (IPO) InvITS would be let to list on stock exchanges, and can increase funds through right issues, preferential allotments, Follow-on offers, bonus issues or any other way.
For the beginning offer of any InvIT, the size of the recommended projects shall not be less than Rs 1000 crore in a propose to make sure that in the starting only established and large players enter the market.
For such InvITS, Rs 250 crore would be the minimum issue size.
On the draft norms by January 20, 2014 the regulatory has sought public comments.
Framework for InvITS globally subsists in many countries, which also includes Hong Kong and Singapore.
Given the difficult section of infrastructure within the country these days, InvITs projected to supply an acceptable structure for financing/refinancing of infrastructure projects within the country.
For more articles on real estate news and updates in India go through Sovereign Developers Reviews official blogs.
.jpg)
Providing draft standard for Infrastructure Investment Trusts (InvITS), Sebi told the latest framework can be by getting these new trusts under REIT model or can be on the lines of Mutual fund, a famous tool for increasing funds in the real estate market, or having a whole set of different norms.The SEBI has obtained varied suggestion to come up with a framework for InvITS. The regulator is analyzing a structure which would provide an extra framework based on the suggestion received for investing in infrastructure of the country.
Sebi says Infrastructure is the foundation of development of any Country, and India requires around Rs 65 lakh crore for investing in Infrastructure sector during 2012-2017.
As per the draft norms & consultation paper provided by the regulatory, under the provision of the Indian Trusts Act 1882, InvITS shall be set up as a trust.
It shall have parties involving Sponsor, Independent engineers, Trustee, Project managers etc.
Sebi prescribes; through Initial Public offer (IPO) InvITS would be let to list on stock exchanges, and can increase funds through right issues, preferential allotments, Follow-on offers, bonus issues or any other way.
For the beginning offer of any InvIT, the size of the recommended projects shall not be less than Rs 1000 crore in a propose to make sure that in the starting only established and large players enter the market.
For such InvITS, Rs 250 crore would be the minimum issue size.
On the draft norms by January 20, 2014 the regulatory has sought public comments.
Framework for InvITS globally subsists in many countries, which also includes Hong Kong and Singapore.
Given the difficult section of infrastructure within the country these days, InvITs projected to supply an acceptable structure for financing/refinancing of infrastructure projects within the country.
For more articles on real estate news and updates in India go through Sovereign Developers Reviews official blogs.
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