REMFS GET CLEAN CHIT FROM MOF

The cloud over real estate mutual funds (REMF) has lifted. The finance ministry has brushed aside RBI’s concerns of REMFs violating foreign direct investment norms in the realty sector. North Block has said the central bank’s concern – stating that REMF scheme notified by SEBI in April contradicted FDI norms – was unwarranted. In the reply to RBI, the ministry has stated that investment through REMFs could be allowed as SERVICE TAX there was no linkage between the investments made by a fund and its investors. REMF investors only own units in the fund and don’t drive its investments decisions on assets. Moreover, SEBI has prescribed several restrictions on
investments by REMFs.