InvestorQ : How did real estate investment trusts (REITs) come in to existence in India?
riya Ranade made post

How did real estate investment trusts (REITs) come in to existence in India?

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Pratik vyas answered.
1 year ago
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The existence of REITs in India began in the United States with the introduction of the Cigar Excise Tax Extension Act in 1960. The act was introduced with the intention of boosting real estate development by way of active investments from investors interested in holding stakes in the real estate sector.

The boosting real estate presented investors the opportunity of reaping huge returns on the investments made. This led to the development of real estate projects and investors getting financially rewarded.

Closer home, REITs were first introduced in India by market regulator Securities and Exchange Board of India (SEBI) in 2007 almost 50 years after they were first incorporated as an investment vehicle.

According to online portal cleartax: Subsequently, there were regulations framed to facilitate the operational functions of these investment funds which were revised and reformed thereafter. REIT companies listed on Indian stock exchanges are monitored and regulated by the SEBI to ensure adherence to industry practices and safeguard the interest of the investors.
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