Government working on plans to revive real estate sector: Nirmala Sitharaman
MUMBAI: The government is looking for possible ways to help revive the distressed real estate sector and some alternative investment funds have shown interest in being part of this revival process, Finance Minister Nirmala Sitharaman said on Tuesday. The finance minister also said the government was on the same page with the Reserve Bank of India (RBI) to address the issues facing this sector.
We are looking for the best way to adjust existing blocks to help people who are affected in this sector ... a support mechanism to revive real estate through which not only central industries such as the supply of materials will benefit but also several homebuyers, Sitharaman said in an event that marks the 25th anniversary of the National Stock Exchange (NSE). She recognized the fact that the real estate It was outside the reinforcement measures announced in September and October of this year.
The finance minister, along with Sebi president Ajay Tyagi, and NSE managing director Vikram Limaye, rang the closing bell at 4 p.m. to announce the closing of the operations in the exchange.
Sitharaman also urged the NSE to expand India's debt markets. “India still relies heavily on banks for their debt needs. But the banks alone cannot adequately serve this wide and constantly growing market. India's debt and capital market must be equally strong to play an important role in determining our economic affairs, he said.
Praising the trade mechanism based on the country's exchange, the minister said that several sovereign and global pension funds seek to enter India, mainly to benefit from India's institutional framework.
In his speech, the head of Sebi indirectly hinted that the exchanges point to higher revenues by increasing their rates. The exchanges are commercial entities for profit and need to devote sufficient resources ... but they should refrain from misusing their oligopolistic position by having an exorbitant and unreasonable rate structure, he said.
Tyagi also emphasized the need for resources and other market infrastructures, which function as the first level of regulator in the capital market system that exists in India, to have a solid governance structure. “As I said before, faith and trust are important for the development of capital markets. The conduct of market infrastructure institutions must be superior. Maintaining the integrity and culture of ethical work is of the utmost importance, ”said Tygai.
The head of Sebi also said the regulator was working to begin interoperability of RBI deposits and Sebi deposits for the smooth transfer of treasury bills and government securities. In this year's Budget, the finance minister had announced such a plan that could smooth the way for retail investors to invest directly in firsts and other government securities.
Earlier, in his speech, the head of NSE made a strong speech to the finance minister to help reduce trading costs, a substantial part of which is the securities transaction tax (STT).