MUMBAI: Shares of real estate companies are in demand and trading higher by up to 10% after the market regulator Securities and Exchange Board of India (Sebi) issued draft regulations for setting up real estate investment trusts (REIT) in the country.
Unitech, DLF, Anant Raj Industries, Indiabulls Real Estate, Sobha Developers, Phoenix Mill, HDIL and DB Realty are up 1-9% on the Bombay Stock Exchange (BSE).
The BSE real estate index Realty, the largest gainer among the sectoral indices, was up nearly 4% as compared to 1.3% rise in benchmark index at 1225 hours.
REIT is an investment vehicle that invests into real estate assets to generate income, which is passed on to investors. Just like a stock, a REIT unit is listed and traded on a stock exchange.
Sebi has proposed REITs to raise capital through an initial offer and raise subsequent funds through follow-on offers.