Permissible investments for real estate mutual funds require minimum direct property allocation and limits on concentration and related party holdings. Regulation 49E requires real estate mutual fund schemes to allocate a substantial portion of net assets directly to real estate and, subject to that requirement, to invest predominantly in real estate assets, mortgage backed securities, and securities of companies engaged in real estate activities, with the balance in other securities. It establishes concentration ceilings by city, by single project, and against unlisted companies; limits holdings of issued capital and scheme exposure to unlisted securities; prohibits specified related party investments; forbids inter scheme transfers of real estate assets; and bars investment in assets previously owned or occupied by the sponsor, asset manager, or their associates within the prescribed prior period.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Permissible investments for real estate mutual funds require minimum direct property allocation and limits on concentration and related party holdings.
Regulation 49E requires real estate mutual fund schemes to allocate a substantial portion of net assets directly to real estate and, subject to that requirement, to invest predominantly in real estate assets, mortgage backed securities, and securities of companies engaged in real estate activities, with the balance in other securities. It establishes concentration ceilings by city, by single project, and against unlisted companies; limits holdings of issued capital and scheme exposure to unlisted securities; prohibits specified related party investments; forbids inter scheme transfers of real estate assets; and bars investment in assets previously owned or occupied by the sponsor, asset manager, or their associates within the prescribed prior period.
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