npavan78
13-06-2008, 01:29 AM
SEBI has declared regulations for Real Estate Mutual Funds. This will help all investors including Retail investors to take advantage of the booming Real Estate market of the country. This will also create a big business opportunity for all of us as demand for this fund is anticipated to be very high. Please find below regulations for your knowledge and information.
SEBI has amended SEBI (MF) Regulations, 1996 to permit mutual funds to launch real estate mutual funds. Existing Mutual funds can readily launch the scheme provided it has key personnel with adequate experience in real estate. However, new applicants to launch REMF should have at least five years of experience in real estate business and should fulfill the eligibility criteria laid by SEBI.
Every REMF scheme will be closed ended with its units listed on a recognized stock exchange. The REMF scheme may let out or lease out the real estate assets if the term of such lease or letting does not extend beyond the period of maturity of the scheme. Redemption of the REMF can be done in a staggered manner.
SEBI has amended SEBI (MF) Regulations, 1996 to permit mutual funds to launch real estate mutual funds. Existing Mutual funds can readily launch the scheme provided it has key personnel with adequate experience in real estate. However, new applicants to launch REMF should have at least five years of experience in real estate business and should fulfill the eligibility criteria laid by SEBI.
Every REMF scheme will be closed ended with its units listed on a recognized stock exchange. The REMF scheme may let out or lease out the real estate assets if the term of such lease or letting does not extend beyond the period of maturity of the scheme. Redemption of the REMF can be done in a staggered manner.