TaxTMI 
TaxTMI 
Securities and Exchange Board of India (Real Estate Investment Trusts) (Second Amendment) Regulations, 2023
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....nt Trusts) Regulations, 2014, namely: - 1. These regulations may be called the Securities and Exchange Board of India (Real Estate Investment Trusts) (Second Amendment) Regulations, 2023. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, ─ I. in regulation 2, sub-regulation (1), - i. the existing clause (qa) shall be renumbered as clause (qai); ii. after clause (q), the following new clause shall be inserted, namely,- "(qa) "group entities of the Manager" means: (i) entities or person(s) which are controlled by the Manager; (ii) entities or pe....
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....rcent of the total outstanding units of the REIT shall comply with the stewardship code specified in Schedule IX of these regulations." III. regulation 7A shall be omitted. IV. in regulation 11, - i. the existing sub-regulation (3) shall be substituted by the following sub-regulation namely, - "(3) The sponsor(s) and sponsor group(s) shall collectively hold not less than - (i) fifteen percent of the total units of the REIT, for three years from the date of listing of units in the initial offer: Provided that any holding by the sponsor(s) and sponsor group(s) exceeding fifteen percent shall be held for a period of not less than one year from the date of listing of units issued in the initial offer; ....
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.... to an initial offer as on the date of coming into effect of the Securities and Exchange Board of India Securities and Exchange Board of India (Real Estate Investment Trusts) (Second Amendment) Regulations, 2023, the provisions contained in clauses (i) to (v) of this sub-regulation shall be applicable only for the additional units issued by the REIT after such date and the units that are locked in at the time of initial offer shall continue to be locked in till the completion of three years from the date of listing of units in such initial offer." ii. after sub-regulation (3), the following sub-regulation shall be inserted namely, - "(3A) The units required to be held in terms of sub-regulation (3) shall be locked in and s....
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.... the following conditions: (i) the REIT has been listed for a period of at least five years; (ii) the REIT has undertaken not less than twelve distributions on a continuous basis and has complied with the distribution norms as per these Regulations in the preceding five years; (iii) the REIT is rated AAA by a registered credit rating agency for a continuous period of five years immediately preceding exit of the sponsor; (iv) during the period of preceding five years, the REIT has not breached, at any time, the maximum leverage thresholds specified in these regulations; (v) the Manager is meeting the net worth criteria for the sponsor as specified in these regulations; (vi) the minimum un....
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.... "Schedule IX : STEWARDSHIP CODE [See Regulation 4(2)(g)] The following principles of stewardship code shall be complied with by any unitholder holding not less than ten percent of the total outstanding units of the REIT: 1. They must act in the best interests of the REIT and its unitholders as a whole; 2. They should formulate a comprehensive policy on the discharge of their stewardship responsibilities, review and update the same periodically; 3. They should have a policy to manage issues of conflict of interest while fulfilling their stewardship responsibilities; 4. They should periodically monitor the REIT and its investee entities viz. HoldCo(s) and SPV(s); 5. They should have a....