Investors, banks will soon opt for Reits


Q: I am bullish on the real estate sector in India but unfortunately real estate investment trusts have not picked up so far. Is there a possibility that such investment opportunities will be available? - M.R. Patel, Dubai

A: Real estate investment trusts (Reits) and infrastructure investment trusts (InvITs) will see the light of day sooner than later. The reason is that the Reserve Bank of India has now taken a policy decision to permit banks to invest in these trusts. Currently, banks are permitted to invest in mutual fund schemes, venture capital funds and equity share capital to the extent of 20 per cent of their net owned funds.

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Source : Investors, banks will soon opt for Reits