One and a half months after the finance minister cleared the final hurdles for REITs (real estate investment trusts), probable candidates are working on some possible glitches before going ahead.
A REIT invests in real estate and trades on major exchanges like a stock. REITs provide investors with an extremely liquid stake in real estate.
In the 2016 Budget, the minister did away with dividend distribution tax (DDT) for such trusts, a major hurdle to floating one.
"We have made representations to Sebi (the markets regulator) and the ministry. There are some minor issues which we hope to see sorted in two to three months. All the changes suggested are in line with the provisions for listed companies," said Sunil Hingorani, director, finance, at K Raheja Corp, one of the probable REIT applicants.
REITs are similar to mutual funds, and can be listed and traded on stock exchanges. These have to distribute a majority of their income as dividend.
