Webinar Highlights Small and Medium REITs
The National Real Estate Development Council (NAREDCO) and Kedia Corporate Advisors Pvt. Ltd. jointly organized a webinar in February focusing on Small and Medium Real Estate Investment Trusts (SM REITs). The webinar's significance is underscored by the recent regulatory amendments enacted by the Securities and Exchange Board of India (SEBI), necessitating a comprehensive grasp of SM REITs.
Insights on Regulatory Framework
During the session, CA Amit Kumar Kedia, Director of Kedia Corporate Advisors Pvt. Ltd., elucidated the benefits and regulatory framework governing SM REITs, offering valuable perspectives.
"We discussed in the webinar how important it is for regulatory frameworks to support entrepreneurship and innovation in the real estate industry. By putting a premium on compliance and openness, we strengthen investor confidence and enable SM REITs to reach their full potential as reliable investment options. By introducing SM REITs, the stringent disclosure and compliance requirements aim to align the REIT market with the Indian equity market, fortifying the regulatory framework and projecting India as an appealing destination for local and foreign investors, augmenting our stature as a worldwide investment hub."
The launch of SM REITs, propelled by the “schematization movement” in financial products, endeavors to democratize ownership by rendering it accessible and affordable across a broad spectrum of investors. Such initiatives underpin India's aspiration to attain developed nation status by 2047.
"Let us embrace this historic policy change as we all work together to embrace this major policy change as we all work together to build an empowered and developed India,” he stressed.
Webinar Coverage
The webinar encompassed an array of subjects, including the concept of SM REITs, the regulatory landscape, market analysis opportunities to attract investors, risk management methodologies, prospective tax ramifications, and future outlooks. A dynamic Q&A session facilitated interaction with participants.
“The SM REIT webinar was a game-changer for the real estate industry in India. Delving deeply into creative methods and tackling challenges, served as an impetus to progress. Through this webinar, we aimed to empower the workforce, foster sustained growth, and drive development within the sector, focusing on alternative financing through Real Estate Investment Trusts (REITs), “stated G Hari Babu, National President of NAREDCO.
According to NAREDCO Chairman Dr. Niranjan Hiranandani,
“As the world’s fastest-growing major economy, India is expected to see faster real estate market growth in 2024, with all real estate indicators at record highs. An encouraging step to facilitating real estate investment in India is the introduction of small and medium-sized REITs. By attracting more retail and institutional investors and lowering entry barriers, these Real Estate Investment Trusts (REITs) hope to boost market confidence by offering opportunities for diversification. This new regulatory framework is expected to boost investments, liquidity, and the influx of both foreign and domestic capital into the real estate industry."
NAREDCO Vice Chairman Rajan Bandelkar stated,
“The real estate industry has been going through significant transformations, with increased organization and the entry of new corporate players. The industry benefits from this evolution in several ways, including increased stakeholder faith and trust, which were lacking previously. Moreover, there is now a stronger relationship between the real estate market and the share market, with rises in the former typically having a favorable effect on the latter."
The approval of SM REITs on March 8, 2024, marks a noteworthy development. Real estate investment trusts (REITs) proffer a novel approach to real estate investing, expediting access to funds for individual investors. REITs facilitate fractional ownership and market participation, thereby enabling those with modest savings to invest in real estate. Democratization of investment opportunities now extends advantages hitherto exclusive to larger investors to regular individuals.