Banks can invest in REITs; Realty index at fresh 52-week high post RBI move

DLF, Godrej Properties, Oberoi Realty, HDIL, Sobha and Indiabulls Real Estate were up 1% to 6%.

Shares of real estate companies were trading higher by up to 6%, erasing their intra-day losses after the Monetary Policy Committee (MPC) said banks can invest in Real Estate Investment Trusts (REITs).

DLF, Unitech, Godrej Properties, Oberoi Realty, Housing Development & Infrastructure (HDIL), Sobha and Indiabulls Real Estate from the realty index were up 1% to 6% on the BSE in intra-day trade, post RBI policy.

At 03:04 pm; S&P BSE Realty index, the largest gainer among sectoral indices, was up 2% at 1,707 as compared to 0.18% decline in the S&P BSE Sensex. The realty index hit a fresh 52-week high of 1,719.87 in intra-day trade.

The Securities and Exchange Board of India (SEBI) has put in place regulations for REITS and InvITs and requested the Reserve Bank to allow banks to participate in these schemes.

“Currently, banks are allowed to invest in equity-linked mutual funds, venture capital funds (VCFs) and equities to the extent of 20% of their NOF. It is proposed to allow banks to invest in REITS and InvITs within this umbrella limit. Detailed guidelines will be issued by end-May 2017,” the Reserve Bank of India (RBI) said in statement on development and regulatory policies.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
DLF	156.50	149.70	4.54
UNITECH	6.03	5.85	3.08
PRESTIGE ESTATES	229.25	223.55	2.55
GODREJ PROPERT.	444.75	435.55	2.11
OBEROI REALTY	384.80	377.50	1.93
H D I L	84.40	83.25	1.38
SOBHA	404.00	399.85	1.04
INDBULL.REALEST.	91.25	90.60	0.72
OMAXE	173.75	172.60	0.67
S&P BSE Realty	1707.31	1671.21	2.16
S&P BSE Sensex	29919.63	29974.21	-0.18