NEW DELHI: Market watchdog Sebi’s plan to allow the listing of Real Estate Investment Trusts(REITs) is a good step and will boost the developments of the developers , Credai said.

The industry body said it would soon submit ideas on Sebi’s drafted guidelines on REITs.

Sebi finished the draft norms of REITs, a five-year old proposal and it is similar to mutual funds which can generate rental income initially.

He also added that “the REIT will also result in increased inflow of foreign funds for the sector, which is struggling for funds in view of the RBI restrictions and negative weightage given to real estate”.

The industry body will soon submit the developers’ viewpoint to Sebi and the market regulator has also asked stakeholders to give their suggestions on the guidelines soon.

To attract more investors, the market regulator has proposed REITs asking the evolution of these investments to be much crucial for the rapid growth of the realty industry.

Knight Frank India Chief Economist & Director, Research, Samantak Das, said the Sebi’s decision to revive the program to allow REITs after five long years give a positive signal that the market regulator is ready to implement REITs market in the country on priority basis.

The move is a progressive move which will boost the realty market in the country and will more finance to invest, will also open new options for the developers and avenues for the investors.