The SEBI Board has approved on August 10 2014, the SEBI (Real Estate Investment Trusts) Regulations, 2014 (“REIT Regulations”) thereby providing a framework for registration and regulation of Real Estate Investment Trusts (“REIT’s”). Some of the salient features include 1) REIT shall invest in commercial real estate assets, either directly or through SPVs. In such SPVs a REIT shall hold or proposes to hold controlling interest and not less than 50% of the equity share capital or interest. Further, such SPVs shall hold not less than 80% of its assets directly in properties and shall not invest in other SPVs. 2) Once registered, the REIT shall raise funds through an initial offer. 3) It would be mandatory to list Units of REITs on a recognized Stock Exchange. 4) A REIT shall invest in at least 2 projects with not more than 60% of value of assets invested in one project. Detailed investment conditions are provided in the Regulations. The new norms for setting up of REIT is likely to attract more foreign investment into the real estate sector.