The Security Exchange Board of India vide its notification dated 16th June 2020, has published the Securities and Exchange Board of India (Real Estate Investment Trusts) (Second Amendment) Regulations, 2020. The amendments deals with the provisions governing the sponsors of Real Estate Investment Trusts.
Through this amendment, new regulation 7A has been inserted relating to De-classification’ of the status of the sponsor.
De-classification of the status of a sponsor(s) of a REIT whose units have been listed on the stock exchanges for a period of three years shall be permitted upon receipt of an application from the REIT and subject to compliance with the conditions that the unit holding of such sponsor and its associates have taken together do must not exceed 10% of the outstanding units of the REIT and the investment manager of the REIT must not be controlled by such sponsor or its associates.
Further, the maximum subscription under Regulation 14(2) (ba) from any of the sponsors shall not be more than 25% of the unit holding.
Click here to read the notification.
