Legislations to be amended to fund InvITs, REITs
01 Mar 2021
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.