India: On the Reit Path
![handle is hein.journals/lrgvtlc9 and id is 154 raw text is:
2017]
INDIA: ON THE 'REIT' PATHt
Sweta Ananthanarayanan* and Shreyas Narla*
I. INTRODUCTION
The growing scale of operations of the Indian corporate sector has
increased the demand for commercial buildings, residential properties
and spaces including warehouses and shopping centres. This surge in
demand has consequently fuelled the need to expand investment in the
real estate sector.
Traditionally, the only sources of financial support for this sector have
been the banks, financial institutions, and in some cases, private players.
Regulated means for investment in real estate have been continually
formed and evolved to provide for this sector; though these have been
circumscribed by direct engagement with physical properties. It is in
this scenario that a relatively modern source of investment in real estate
properties, being the real estate investment trust (REIT), has been seen
as the way forward
REIT serves as an alternative for investors who are averse to investing
in physical properties due to the monetary quantum involved, and the
risks that may arise including unsupervised and arbitrary rent generated
from such properties. Investors can buy and sell units of REIT on
various stock exchanges, making investment easier as well as ensuring
liquidity and transactional transparency compared to acquisition of a
t The article reflects the position of law as on 17 January 2017.
The author is an alumna of Government Law College, Mumbai and is presently working
as an Associate at Cyril Amarchand Mangaldas. She can be contacted at sweta.glct
gmail.corn.
The co-author is a student of Government Law College, Mumbai and is presently
studying in the Fifth Year of the Five Year Law Course. He can be contacted at narla.
shreyas ttgmail.com.
1 See Consultation paper on the draft Securities and Exchange Board of India (Real Estate
Investment Trusts) Regulations, 2013, see also Hemant Goyal & Sandhya Gupta, 'REITs
to Boost Growth and Transparency in Indian Real Estate Sector' HG Legal Resources,
available at https://www.hg.org/article.asp?id=33321 (last visited 17 January 2017).](ViewImageLocal?handle=hein.journals/lrgvtlc9&div=12&collection=&method=preview&ext=.png&size=3)
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India: On the Reit Path
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