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RBI permits banks to invest up to 10% in REITs, InvITs

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The Reserve Bank of India (RBI) on Tuesday permitted banks to invest up to 10% of the unit capital of a real estate investment trust (REIT) or infrastructure investment trust (InvIT). Banks’ exposure to REITs and InvITs will be within the overall ceiling of 20% of the net worth permitted for direct investments in shares, convertible bonds/ debentures, units of equity-oriented mutual funds and venture capital funds. “Banks should put in place a board approved policy on exposures to REITs/ InvITs which lays down an internal limit on such investments within the overall exposure limits in respect of the real estate sector and infrastructure sector,” RBI said.

Mint New Delhi, 19th April 2017

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