A new investment choice business standard/ein new Delhi.December 31, 2007, the (January 10) prescribed the for draft guidelines on of material estate investment trusts of the note on the collateral and exchange board of Indias (RIDE) cut off rolls for a long time before around, it is obvious that the 64-page document is rather complete, outlines the thinking direction and clearly of Sebis referring to, die suggest that the automatic controllers plentifully existing caution exercises, while granting the introduction of what examined hat that to a popular investment carriers in the other markets is an RIDES as expert mutual fund that be described can invested only in the real estates. Like all AMCs, it designs drafts with different parameters, raises money, by selling units to private investors, invests yields of the new capital victims in the real estates, indicates net asset values, pays dividends, etc. the advantages is various. REITs could assign unterere the entry barrier for investors who wish to moderate mixing to to real estates. It offers at the same time diversification within the the sector an and giving a chance to spreading dangers over different real estate plays. Where they exist, REITs the real estate industry transparent entrance to clean finanzierenand more offer private cheapness investor and developer the choice to exit an final or halffinal project give. Crucially the in Indian the context, could help REITs untereren the speed of black the money, which flows into and out of real estates. the of danger lies in the fact that REITS is created on, which is financial “, and wuerfelnde” of real estate projects cuts. In the theory if an RIDE small a percentage of his korpus in everyone of many projects hat, it less through or loss one of the project retarded one affects. In practice as divided of getting thing are exceeded around, financial structuring spirals and, which can become difficult it to judge the Qualitaetsof given briefcase. lack of due conscientiousness and unrestrained financial structuring box lead to crises the us premain situation like. Sebi is not clearly determined to guarantees that this occur. REITs, which May is, begun only by banks, banks or companies they, will for financial Solvency with the mandatory soil quality evaluations and minimum net value requirements (R-S 3 crore first, to R-S 5 crore rising), there must independent directors, etc. its vetted.. Straight ones as important, are the parameters more under which REITs box invest, which and profits disburse, defined all drafts will the registered closed ended and are, which form for them Long term investments. than 15 per cent of the korpus cannot be per cent to by the the same group, project assigned to a given project and not, than 25 and preference must to income-producing projects this be given in-loads focus on advertisement of projects with renting incomes. Interesting 90 per of the annual net income disbursed to investors must be cent; this, by the the, which way is, could tax inefficient. clearly be, Sebi regards the RIDE as carriers for varied investment in income-producing real estate plays, more rather, a platform for die logging of the speculative profits on country price acknowledgment this a radically new approximation for Indian real estates players and investors so than also is. the devil, of course, will lie in detail the. How much is top side will there in REITs for investors and, how much danger? No one knows that the forms, while yet. the discharges first will probably year prepares a down the line still, the draft the for, the creation of a new category of to be rubbed is, which die these financing equipments could be a focus for wealth creation as well, as into helping to clean up instrumentally a sector is that notorious for its impermeable financial practice.
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