The Securities and Exchange Board of India (Sebi) Wednesday issued guidelines for preferential issue of units and institutional placements of units by listed real estate investment trusts (REITs). Sebi said a listed REIT can make a preferential issue of units or an institutional placements provided the issuance has the minimum listing period of 12 months.
Sebi also said listed REITs can make a preferential issue of units or institutional placements if a resolution of existing unit holders approving the issue of units in accordance with Regulation 22(6) of the REIT Regulations is passed. REITs shall not make any subsequent institutional placement till expiry of six months from the date of the prior institutional placement made pursuant to one or more special resolutions.
REITs, which primarily invest in completed, income-yielding real estate assets, are similar to mutual funds, and can be listed and traded on the stock exchanges.
Any offer or allotment through private placement shall not be made to more than 200 investors (excluding institutional investors) in a financial year. —FE