SEBI gears up to notify final guidelines for REITs
PrintListen to this Article
A long standing demand of the real estate industry and a third attempt by the market regulator SEBI to revive the Real Estate Investment Trust regime in India finally received a shot in the arm with the Government providing for a tax pass through status for REITs in the Budget proposals announced on Thursday.
Reworked proposals
Taking a cue from the announcement, SEBI has decided to take up the reworked REIT proposals for final approval and notification at its next board meeting, paving the way for its eventual rollout.
A senior SEBI official said: “The tax pass through status was the only stumbling block in implementation of the REIT and now that it has come through, SEBI is fully geared to present the approvals in our next board meeting itself.”
Under the taxation incentives proposed for REITs, interest income derived out of REITs for the unit holder would have pass through status while capital gains and dividend distribution will be taxed.
Industry experts stated that the move would help benefit developers monetise ready commercial assets, attract foreign and domestic capital and incentivise all those who are developing or investing in projects under construction by providing them an exit route through sale to REITs and help large players plan long gestation projects.
“Under the taxation regime proposed, the interest income derived by REITs to end investors would be subject to a favourable tax regime and there would also be deferment of tax on the initial transfer of property to REITs. However, income distributed to investors as dividend would continue to be subject to corporate income tax and dividend distribution tax,” said Gautam Mehra, Executive Director, PwC.
“Though industry was also expecting relief on the dividend distribution tax, what has come is still a huge positive for the industry and now all eyes would be on SEBI to announce the reworked REIT guidelines,” he added. (The Hindu)
Category : SEBI | Comments : 0 | Hits : 403
A financial influencer, also known as finfluencer, who was also involved in imparting training related to stock market trading has been asked to part with a little over ?12 crore, which it made unlawfully. The funds are to be credited or deposited by Ravindra Balu Bharti into an interest-bearing escrow account that has been set up in a nationalised bank especially for that purpose. The regulator stated in an order that the escrow account(s) would establish a lien in favour of SEBI and that th...
The Securities and Exchange Board of India (Sebi), the country's market regulator, has announced the launch of an optional same-day (T+0) settlement cycle for a select group of 25 stocks starting March 28, as per a circular published on its website last Thursday. This new initiative, referred to as the beta version, is set to coexist with the traditional next-day (T+1) settlement cycle, where trades are settled within 24 hours of execution. The T+0 settlement option will be available for ...
Capital markets regulator Sebi on Thursday slapped a fine of Rs 48 lakh on eight entities, including promoters of United Polyfab Gujarat Ltd (UPGL), for manipulating the share prices of the company. These entities have to pay the penalty jointly and severally within 45 days, as per an order. The order came after Sebi conducted an investigation of UPGL and trading by certain entities in the scrip of the company, to ascertain whether there was any violation of the provisions of the PFUTP (Pr...
Sebi alerts investors about the growing trend of unregistered entities falsely claiming Sebi registration and offering unrealistic returns. Investors are advised to verify the registration status and consider the inherent risks associated with high-return investments. The Securities and Exchange Board of India (Sebi) has issued a warning to investors, cautioning them against investing money with unregistered entities that promise assured or exceptionally high returns on investments. This advi...
Capital markets regulator Sebi on Thursday issued orders of action against 15 guest experts of the Zee Business channel for unlawful trading. The entities made unlawful gains to the tune of Rs. 7.41 crore from such trades and the profit was shared with guest experts as per prior understanding, Sebi noted. The market regulator also asked the guest experts to pay Rs.7.41 crore. The guest experts appeared on the Zee Business channel from 1 February 2022 and 31 December 2022. "The facts of t...
Comments