CURRENT AFFAIRS

Detailed explanation-1: -Sebi on Thursday proposed to allow REITs and InvITs to issue depository receipts to provide foreign investors an opportunity to participate in the units of Indian emerging investment instruments.

Detailed explanation-2: -REITs, or real estate investment trusts, are companies that own or finance income-producing real estate across a range of property sectors. These real estate companies have to meet a number of requirements to qualify as REITs.

Detailed explanation-3: -REITs are regulated by SEBI; hence chances of fraud are very rare. These are transparent as they disclose the capital portfolio annually and semi-annually. These offer a relatively higher dividend as approximately 90% of income is paid as a dividend to the REIT investors.

Detailed explanation-4: -REIT – The value of each allotment lot shall not be less than Rs. 50000 with each lot consisting of 100 units. InvIT – The value of each allotment lot shall not be less than Rs. 1 lakh with each lot consisting of 100 units.

Detailed explanation-5: -REIT or Real Estate Investment Trust is a trust registered with SEBI to carry out the activity prescribed under SEBI (Real Estate Investment Trusts) Regulations, 2014. A REIT raises funds by issuing units to investors and invest those funds primarily in assets in real estate sector.