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HUDCO favours real-estate share trading

new delhi: real estate investment trusts (reits) for trading in real-estate shares should be introduced soon by framing necessary tax and regulatory structures, chairman and managing director of housing and urban development corporation ltd (hudco) v suresh said on tuesday. "indroduction of reits allowing free trading of real estate shares would be a practical approach to kick-starting the real estate sector in india," suresh told pti here. exclusive guidelines under sebi provisions need to be framed as soon as possible for allowing trading in real estate stocks, he added. reit offers investors an innovative option for trading in real estate stocks, he said adding "it also collects dividends from capital appreciation and rental income". a riet operates like a mutual fund, where investments of individual investors are consolidated to invest in real estate, rather than stocks of companies. the essential differece between a riet and mutual fund is that investments made in reit are traded in real estate stocks and not invested in stock of companies, suresh said. reit is one of the most popular forms of investment tool in developed markets such as united states, uk and australia. in the usa, there are 300 publicly traded reits where average daily share transaction volume stands over 260 million dollar. new york stock exchange itself lists over 149 reits. it made debut in tokoyo stock exchange as an investment tool in september 2001.

Source: Times Of India

By vayaM CS