Jaitley to address SEBI Board on Aug 10

Finance Minister Arun Jaitley will address SEBI Board in the Capital on August 10 in a customary post-budget meeting. This meeting assumes significance as it would be the first time Jaitley would address the entire SEBI Board after the new BJP Government assumed office at the Centre in end May.

After assuming charge as Finance Minister, Jaitley had in Mumbai interacted with some institutional investors besides meeting few SEBI wholetime members.

On Sunday next (August 10), market regulator SEBI is expected to finalise the regulations for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

A REIT is an investment vehicle that puts money into real estate assets to generate income.

SEBI was ready with the draft REIT regulations last year itself, but tax hurdles had come in the way of finalising them.

Now the path is clear with the Government granting tax pass through status for REITs.

Jaitley had in his maiden budget speech on July 10 given a tax booster to REITs by announcing that such vehicles will enjoy the status of tax pass through.

He had also announced that modified REITs type structure for infrastructure projects—dubbed as Infrastructure Investment Trusts (InvITs)-- will be allowed for public private partnerships and other infrastructure projects.

These InvITs will also enjoy tax pass through status.

A pass-through status for a trust would mean that income generated by such vehicle will be taxed in the hands of the investor and that the trust by itself would not have to pay tax on the same.

Jaitley will also address the Reserve Bank of India (RBI) Board on August 9 in the capital. This is a customary post-budget meeting, sources said.

srivats.kr@thehindu.co.in.

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