What to expect from Sebis board meeting today

The Securities and Exchange Board of India (Sebi) is convening its board meeting in Mumbai on Friday June 17, 2016.

Regulations on Real Estate Investment Trusts (REITs) and rules for foreign fund managers keen to relocate to India are likely to be discussed in. 

The meeting involves in bringing flexibility for real estate investors and to boost foreign investment in the assets.

Here what you can expect to happen in REITS:

Sebi plans to relax regulations of REITs, making it more attractive for investors to invest.

Investment in under construction property to be allowed, enabling large entities to freely invest in the asset. At present, the regulation allows 20% of cap investment of REITs asset in under-construction projects.

In the meeting, Sebi may allow REITs to have large number of sponsors. Currently the asset is allowed only three sponsors, the number is expected to increase to five.

Also, minimum public offer size and related party transactions would also be considered. 

According to Economic Times report, Sebi might examine to rationalise the requirements in the related party transactions, under which approval of 60 per cent unitholders apart from related parties, is required for passing a related party transaction. 

On Fund Manager to relocate to India:

In move to make it easier for overseas fund manager, wanting to relocate in India, Sebi board might allow them to operate as 'Portfolio Managers' under a flexible regulatory regime.

Apart from an existing Sebi-registered Portfolio Manager, the board will also be granted  to perform as Eligible Fund Manager (EFM) with prior notification from Sebi and subject to certain conditions. 

According to Live Mint report, if allowed, the fund managers operating mostly Mauritius and Singapore might get an opportunity to be registered under Sebi’s portfolio management regulations.