Mumbai: Realty stocks Tuesday gained up to 5 percent after the Union Cabinet approved amendments to the long-pending real estate bill, paving the way for regulation of the sector.
Shares of Anant Raj Ltd rose by 4.67 percent and that of Housing Development and Infrastructure Ltd (HDIL) gained 3.93 percent on the BSE.
Among others, shares of Sobha Ltd went up by 3.39 percent, Unitech climbed 2.92 percent and Indiabulls Real Estate was up 1.99 percent.
Paving the way for regulation of realty business, the Union Cabinet yesterday approved amendments to the long-pending real estate bill to bring under its ambit commercial and all ongoing projects as also brokers, while safeguarding consumers.
While the Bill already provides for strict penalties including jail for errant builders, the amendments seek to make it mandatory for all developers, including of housing projects, to keep minimum 50 percent of funds collected from buyers in a escrow account to meet construction cost.
Developers welcomed the proposal for having a regulator under the the Real Estate (Regulation and Development) Bill, 2013, but expressed concerns over retrospective application with regard to registration of all ongoing projects.
