The final drafted norms on the proposed real estate investment trusts (REITS), which help the fund- starved realty sector with long-term funds, will be out soon.

The government is looking at announcing the final guidelines for REITs.There is now a integrated effort on the part of the government and the regulators and it is believe that in this rapidly changing environment, credit rating agencies will have to play an important role.

About five years after issuing the first draft regulations for REITs, the markets regulator Sebi on October 10 this year had issued the draft guidelines to allow REITs for the infra sector.

REITs are a novel investment instrument expected by the Sebi, which are expected to pep up the cash-strapped realty sector with capital infusion.

For REITs to be successful, they have to be tax efficient. The Sebi will ask the tax authorities to consider some incentives for REITs.

These trusts are proposed to be permitted to list on exchanges through IPOs and through follow-on offers and raise funds. Sebi has also said REIT would invest mainly in completed revenue generating properties.

The move of the market watchdog is aimed at providing investment avenues for investors by way of trading units of REITs, similar to mutual fund and other exchange-traded funds for stocks, bonds and other securities.

In its draft guidelines relating to REITs, the market regulator has broadly applied a framework similar to that of an initial public offers, requiring listing of units issued by REITs. Sebi has also prescribed various norms, including those related to minimum offer size, public float, and size of assets.