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India's central bank will allow the country's lenders to invest in real estate and infrastructure investment trusts, the latest in a series of regulations aimed at bringing the asset class to life.
The Reserve Bank of India said in a press release on Thursday that banks can participate in IPOs of Reits and InvITs, following a request from the Securities and Exchange Board of India (Sebi).
Banks are currently allowed to invest in equity-linked mutual funds, venture capital funds and equities for up to 20% of their net-owned funds. RBI said lenders can now invest in Reits and InvITs within this limit.
The central bank will issue detailed guidelines on the ruling at the end of May.
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