The Securities and Exchange Board of India (Sebi) on Monday proposed easier norms for real estate investment trusts (REITs) and said that such entities do not need to buy or sell assets at prices suggested by independent valuers while undertaking related-party deals.
At present, for related-party transactions, REITs are required to purchase or sell assets at a price that is not greater or less than the average of two independent valuations.
In order to allow more flexibility, the regulator proposed that REITs can purchase properties at any value as long as the price is not greater than 110% of the average of the two independent valuations. And REITs can sell a property at any price as long as the value is not less than 90% of the average of the two independent valuations, Sebi said in a consultation paper.
