Realty stocks slip after Cabinet clears Regulation Bill

Realty stocks slip after Cabinet clears Regulation Bill
Shares of realty stocks, led by HDIL, Unitech, DLF, fell between 1.1 to 3.8 per cent in early trade on Bombay Stock Exchange (BSE) after the Cabinet cleared the Realty Regulation Bill which has provision for stringent penalties.

The Bill, which the real estate sector has vigorously opposed, contains provisions for jail terms to developers who cheat buyers. Also, builders will not be allowed to divert money paid by home-buyers to other projects.

The Bill also provides for a refund if a project is delayed. Under the proposed new law, builders will be able to sell property only after getting all necessary clearances.

Weighed down by development, shares of HDIL declined as much 3.82 per cent to trade at Rs 40.25 a piece on the BSE.

Among others, Anant Raj Ind was down 2 per cent, followed by DLF (down 1.1 percent), IndiaBulls Real Estate (down 1.9 percent) and Unitech (down 1.5 percent) were major losers in the sector.

Meanwhile, the broader benchmark Sensex was quoting at 19,526.80, down 18.98 points or 0.10 per cent at 10:10 hours.

Story first published: Wednesday, June 5, 2013, 13:31 [IST]
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