The finance ministry on Thursday said the Finance Bill has proposed amendments to permit foreign portfolio investors (FPIs) an entry into debt financing of emerging investment vehicles – REITs and InvITs. to borrow and issue debt securities," the finance ministry said in a statement. In order to make such investment vehicles attractive and lucrative for investors, finance minister also proposed to exempt taxes on dividends on REITs and InvITs. "Debt financing of InVITs and REITs by Foreign Portfolio Investors (FPIs) will be enabled by making suitable amendments in the relevant legislations," the minister said. REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) are relatively new investment instruments in the Indian market.

Source: Mint February 11, 2021 16:26 UTC