No business can run without funds. However, funds are obliged to pay the interest on borrowed money which will come from a flourishing business. To circumvent the heavy risks of taking debt, the concept of equity has evolved which permits shareholders as legal proportionate firm holders. Stake holders provide the funds, thus enabling the operations. The property sector typically involves enterprises that are capital intensive.
Real estate is one of the most popular investment options for majority of Indian households, usually done by investing in residential apartments or residential plots. Like gold real estate has been regarded as a safe investment. Over the past few years, structured and formal routes in real estate have increased which is primarily a structured deal via subscription to Non-Convertible Debentures [NCD]/ Optionally Convertible Debentures [OCDs] by the SPV developing a project. [Read more…]