Mumbai: Realty stocks on Monday gained as much as 5.6 percent after market regulator Sebi cleared final guidelines for creation and listing of business trusts for real estate and infrastructure sectors.
Shares of Oberoi Realty surged 5.63 percent, while that of Indiabulls Real Estate soared 4.63 percent on the BSE.
Similarly, DLF rose by 3.9 percent and Unitech gained 3.85 percent.
The BSE realty index was trading 1.79 percent higher at 1,871.82.
To help attract greater foreign and domestic investments into real estate and infrastructure, Sebi had on Sunday cleared final guidelines for creation and listing of business trusts for these key sectors.
Sebi Chairman U K Sinha had said that the proposals with respect to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) were cleared by the board.
Along with foreign investors, domestic institutions like insurers, pension funds and provident funds would also be allowed to invest in these trusts.
The new norms would enable listing and trading of REITs and InvITs as any other security on the stock exchange platforms and also help create new platforms for raising of funds by real estate and infrastructure companies.
A real estate investment trust is a company that owns, and in most cases, operates income-producing real estate.
