The Securities and Exchange Board of India on Monday approved guidelines for real estate mutual funds.
The board approved the changes in venture capital fund lock in period for initial public offers. This was disclosed by Sebi officials after the board meeting on Monday.
The market regulator has defined Real Estate Mutual Fund Scheme as something 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 regisration to carry on the business of custodian of securities by the Board. The custodian shall safekeep 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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