New Delhi, Feb 11 (SocialNews.XYZ) The Centre has included amendments to various financial legislations in the Finance Bill, 2021 to permit debt financing of InvITs and REITs by Foreign Portfolio Investors, a Finance Ministry statement said on Thursday.
In the Budget speech 2021-22, it has been announced that "debt financing of InvITs and REITs by Foreign Portfolio Investors will be enabled by making suitable amendments in the relevant legislations".
This will pave the way for easy access of finance to InvITs and REITs thus augmenting funds for infrastructure and real estate sectors.
As part of the Finance Bill, 2021, amendments have been proposed in the Securities Contracts (Regulation) Act, 1956 and the Securities and Exchange Board of India Act, 1992, with consequential amendments in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 to confer the power to Pooled Investment Vehicles (defined to include AIFs, REITs, InvITs etc.) to borrow and issue debt securities.
The necessary notifications would be issued by the concerned regulators after the Finance Bill is passed by Parliament, the ministry statement said.
Source: IANS
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