In July-06, I had written that Real Estate Mutual Funds will hit the Indian market. Today, Mr. Kurien, Chairman of Association of Mutual Funds in India said that AMFI had worked with SEBI and the guidelines are expected to be out soon.Latest developments can be summarized as follows.
- SEBI wants these schemes to be listed on various stock exchanges.
- Mutual Fund managers don't want to list on exchanges for reasons stated below
- Mutual Fund managers are worried about non-transparency in real estate and land bank deals. Non-existence of REITs [Real Estate Investment Trusts] will cause liquidity problems should the investors opt for mass redemption.
- Fund managers want Real Estate Mutual Funds initially to be closed ended for 3 years so that the Indian real estate market currently dominated by Politicians, Mafia and Black Money businessmen mature as an Industry.
- Fund managers initially want to introduce these funds only for High Networth Individual
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