India approves $1.4 bln fund to help stalled housing projects - minister

Is realty sector next in line for Finance Minister Sitharaman's booster shot?

India approves $1.4 bln fund to help stalled housing projects - minister

He said that deep and liquid secondary markets are important to facilitate primary capital raising and that there is a need to improve the breadth and depth of our secondary markets. Many pollsters have opined that hard economic realities such as the deepening agrarian crisis and rising joblessness have trumped the nationalism card of the ruling BJP in both the states.

"A streamlined tax structure would significantly enhance attractiveness of our markets and wider participation would enhance liquidity across securities".

Finance Minister Nirmala Sitharaman on Tuesday said the government will soon use its strong electoral mandate to usher in the next wave of reforms, and not to miss the bus this time. "The development of the fixed income derivatives market is also critical to enable hedging of interest rate risk and credit risk", he said.

Following a cabinet meeting here, Finance Minister Nirmala Sitharaman announced that the ministry has formed an Alternative Investment Fund (AIF) with an initial investment of Rs 10,000 crore from the government, while the rest will be invested by the Life Insurance Corp (LIC) and the SBI. "India is still largely dependent on banks for its debt needs".

Praising the country's exchange-based trading mechanism, the minister said that several sovereign and global pension funds are looking to enter India, mainly to benefit from India's institutional framework.

Sitharaman said the government and the Reserve Bank of India (RBI) were working to resolve the issues that this vital sector faced, according to PTI.

The minister admitted that the measures introduced to this point haven't helped to revive the sentiment in the true property and stated that since August, the federal government had been making numerous interventions to revive the market and shopper demand. "Any project that has not been sent for liquidation by the bankruptcy court are also eligible" Sitharaman said.

Sithraman said that banks alone can not service all of the country's credit or debt requirements.

The Finance Minister praised National Stock Exchange for showing "an extraordinary positive inclination to use technology with an objective to democratise, to retail and to take stock market to the people" in the last 25 years since its inception.

He said there had been significant improvement in facilitating market access with streamlined registration and KYC process.

It would, however, refrain from projects that have already been ordered to be liquidated, she said.

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