Real estate
In a move to offer retail investors greater opportunities to profit from the increase in Indian property prices, the Securities and Exchange Board of India (SEBI) amended its mutual funds regulations on 16 April to permit the launch of real estate mutual funds (REMFs).
SEBI has outlined a list of criteria that must be met before the establishment of new mutual funds, and the launch of REMFs by existing mutual funds, is permitted.
The policy stipulates that a minimum of 35% of the net assets of the scheme must be invested directly in real estate assets. Additionally, the notification requires that investments by REMFs in real estate assets and real estate-related securities (including mortgage-backed securities), should not be lower than 75% of the net assets of the REMF.
