Legislations to be amended to fund InvITs, REITs

Real Estate

The Ministry of Finance has announced that debt financing of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) by Foreign Portfolio Investors (FPIs) would be enabled by making suitable amendments in the relevant legislations.

The Ministry of Finance had announced during Union Budget 2021-22 that the Finance Bill has proposed amendments to permit FPIs an entry into debt financing of these emerging investment vehicles. Following up on the announcement, the government is acting to make such investment vehicles attractive and lucrative for investors. The FM proposes to exempt taxes on dividends on InvITs and REITs.

The move comes in a bid to increase funds for the real-estate and infrastructure sectors. Ac