New Delhi: Shares of real estate companies surged up to 6 per cent in trade on Monday, after capital markets watchdog Sebi approved regulations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The move by SEBI will give cash-strapped developers easier access to funds and create a new investment avenue for institutions and wealthy individuals.
Phoenix Mill Ltd rose 4.65 per cent, Indiabulls Real Estate Ltd 3.72 per cent, Anant Raj Ltd 3.4 per cent, Oberoi Realty Ltd 3.2 per cent, Unitech Ltd 3.1 per cent, DLF Ltd 3.1 per cent, Housing Development and Infrastructure Ltd 2.6 per cent, DB Realty Ltd 2.7 per cent, Prestige Estates Ltd 2.3 per cent, Jaypee Infratech Ltd 4.5 per cent, and GMR Infrastructure Ltd 2.2 per cent.
The BSE realty index rose as much as 3.42 per cent.
REITs will be allowed to raise funds through an initial offering and units of REITs have to be mandatorily listed on a stock exchange, similar to initial public offering (IPO) and listing for equity shares, the regulator said.
