SEBI to clear launch of Real Estate Investment Products

Yesterday, the SEBI Chairman, Mr M. Damodaran has mentioened that the decks have been cleared for the launch of the real estate investment products in the market.

The last hurdle had been cleared with the Association of Mutual Fund Industry and the Institute of Chartered Accountants of India having firmed up the valuation norms for these products.

Explaining the process, he said that these two bodies looked at whether it was possible at all to accord a valuation and the frequency with which one needed to do it. Valuation, almost on a continuing basis, is needed as people enter and exit schemes on a regular basis.

The above means that Real estate fund that were privy only to the High networth individuals will start being available to the common man. Also, the high frequency of price disclosure means that one will be able to get in and get out of the fund just like any other Mutual Fund unlike the current Real estate fund which have long term commitment and lock in.


Learn more about Real estate funds in the links given below

1. Investing in Real Estate Part - I

2. Investing Real Estate Part - II