Mumbai: Market regulator SEBI on Monday approved the guidelines for Real Estate Mutual Funds (REMFs), which would allow investors to buy and trade shares in the realty sector.
At its meeting in Mumbai, SEBI also announced changes in Venture Capital Fund lock-in period for IPOs.
The market regulator has defined Real Estate Mutual Fund Scheme as a scheme of a mutual fund, which has investment objective to invest directly or indirectly in real estate property and shall be governed by the provisions and guidelines under SEBI (Mutual Funds) regulations.
The structure of the REMFs, initially, shall be close ended. The units of REMFs shall be compulsorily listed on the stock exchanges and the NAV of the scheme shall be declared daily.
The REMFs shall appoint a custodian who has been granted a certificate of registration to carry on the business of custodian of securities by the Board. The custodian shall safe keep the title of real estate properties held by the REMFs.
These schemes can invest, including directly in real estate properties within India, mortgage (housing lease) backed by securities, equity shares/ bonds/ debentures of listed/ unlisted companies which deal in properties and also undertake property development and in other securities, the SEBI release said.
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