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DLF stock gains; SEBI allows FPIs to invest in REITS

Shares of DLF gained over 2 per cent after markets regulator Sebi allowed foreign portfolio investors to invest in newly launched products - REITs, InvITs and AIFs - and also permitted them to acquire corporate bonds under default.

Photo: Reuters Photo: Reuters

Shares of DLF gained over 2 per cent after markets regulator Sebi allowed foreign portfolio investors to invest in newly launched products - REITs, InvITs and AIFs - and also permitted them to acquire corporate bonds under default.

The stock of real-estate firm gained as much as 2.5 per cent on the Bombay Stock Exchange (BSE), but pared gains to settled the day 0.85 per cent higher.

The move is seen positive for DLF, which is likely to come up with first Real Estate Investment Trust (REIT) this year, say analysts.

Business trust structures of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvIts) are expected to help in attracting funds into the country's real estate and infrastructure segments.

Besides, Sebi has allowed FPIs to invest in Category-III Alternative Investment Fund (AIF) - a class of pooled-in investment vehicles for real estate, private equity and hedge funds.

However, the Securities and Exchange Board of India (Sebi) said that FPI will not hold more than 25 per cent stake in such AIFs.