Related-party leasing restrictions limit rental income from affiliates and require market terms to protect scheme asset integrity. An asset management company may let or lease real estate held by a real estate mutual fund scheme only for a term not extending beyond the scheme's maturity; it must diligently collect rents or other income. Such assets may be let to the sponsor, asset management company or their associates on market price or commercial terms, provided that not more than 25% of the total rental income of the scheme is derived from assets so let.
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.
Related-party leasing restrictions limit rental income from affiliates and require market terms to protect scheme asset integrity.
An asset management company may let or lease real estate held by a real estate mutual fund scheme only for a term not extending beyond the scheme's maturity; it must diligently collect rents or other income. Such assets may be let to the sponsor, asset management company or their associates on market price or commercial terms, provided that not more than 25% of the total rental income of the scheme is derived from assets so let.
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