SEBI-RBI SPAT GROUNDS VENTURE CAPITAL IN REAL ESTATE
Sharp difference between the Reserve Bank of India (RBI) and the Securities and Exchange of India (SEBI) have stalled foreign venture capital real estate funds from setting up shop in India. The RBI is insisting that funds floated by foreign venture capital investors (FVCIs) be brought on a par with real estate funds coming through the Foreign Direct Investment (FDI) route for regulatory purposes. At present, the FDI in the real estate sector is permitted through the automatic route and does not require the Foreign Investment Promotion Board (FIPB) nod. But fund houses have to adhere to certain project and financial restrictions.