Mumbai: Realty stocks on Friday rose by as much as 8.1 percent after market regulator Sebi issued draft norms for listing Real Estate Investment Trusts (REITs), which will help in channelising more funds into the real estate sector.
Shares of Unitech surged 8.10 percent, while Prestige Estates gained 3.31 per cent and DLF was up 3.21 percent.
Similarly, Indiabulls Real Estate rose by 1.55 percent and Oberoi Realty went up by 1.53 percent.
Following the gains in these stocks, the BSE realty index ended the day at 1,354.47, up 2.66 percent.
REITs, a popular investment vehicle in many parts of the world, is similar to mutual funds except that investments would be on real estate assets that generate rental income.
Looking to attract more real estate investors into the capital market, Sebi yesterday proposed listing of REITs saying the evolution of such investment vehicles is "crucial" for the rapidly growing real estate industry.
REITs would be allowed to list on stock exchanges through Initial Public Offer (IPO) and can raise funds further through Follow-On Offers, according to the draft norms issued by Securities and Exchange Board of India (Sebi).
"REIT shall be set up as a Trust under the provisions of the Indian Trusts Act, 1882," it had said while seeking comments from stakeholders by end of this month.
First Published: Friday, October 11, 2013, 18:51