India’s Central Bank Allows Bank Investments in REITs, InvITs

India’s central bank, The Reserve Bank of India, will allow banks which are currently allowed to invest as much as 20% of their net-owned funds in equity-linked mutual funds, venture capital funds and stocks, to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). The central bank will issue detailed guidelines by the end of May.

Real Estate

Markets regulator, Securities and Exchange Board of India has been easing rules to make REITs and InvITs more attractive to investors. In January, the markets regulator permitted mutual funds to invest in REITs and InvITs.  In March, India’s insurance regulator also amended guidelines for insurers to invest in these asset classes, reports the Livemint.

Private equity firm Blackstone Group Lp, the largest owner of office real estate in the country, may list two separate REITs for its office assets with developer partners.

 

 

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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