APREA members recently met yet again with the Ministry of Finance to discuss the the case of allowing bank lending to REITs and FPIs, insurance cos, pension funds being allowed to invest in debt securities of REITs and InvITs.
The submission addresses the basic principle of how trust can borrow and borrowing for trust level / cross collateralization is good. It also addresses why there are less changes of default in listed InvITs and REITs and the enforcement built-in if there is a default.
APREA - Borrowings (Indian Trusts Act)
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APREA - Discussion Note (Rationale for borrowings + Enforcement)
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