Foreign Venture Capital set to invest in Indian Real Estate market
Mumbai, September 25, 2006: The long wait appears to be near an end for Foreign VC funds who have been keen on investing in the Indian Realty sector and are awaiting approval from RBI.
The Securities and Exchange Board of India (SEBI) has already approved the guidelines for Real Estate Mutual Funds and also given the nod for lifting the lock-in period for venture capital funds, which had remained invested for over a year and were offering their stake through IPOs. These funds will be governed by SEBI regulations.
Despite provision for 100% FDI in the realty sector, and SEBI clearance, RBI has been holding back on approvals. RBI's concern is the possibility of asset price inflation in the country.
The Government of India is reported to have advised RBI to approve investments in the realty sector by foreign venture capital funds. Financial majors like Kotak and IL&FS are also reported to be seeking RBI approval to bring foreign VC funds into the Indian realty sector.
By INRnews Correspondent
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