Regulation 49H - Usage of real estate assets of a real estate mutual fund scheme - Securities and Exchange Board of India (Mutual Funds) Regulations, 1996

1 [ Usage of real estate assets of a real estate mutual fund scheme 49H. (1) The asset management company may let out or lease out the real estate assets held by the real estate mutual fund scheme if the term of such lease or letting does not extend beyond the period of maturity of the scheme. (2) Where real estate assets are let out or leased out, the asset management company shall diligently collect the rents or other income in a timely manner. (3) Real estate assets held by a real estate mutual fund scheme may be let out to the sponsor, asset management company or any of their associates, at market price or otherwise on commercial terms: Provided that not more than 25% of the total rental income of the scheme shall be derived from assets so let out. ] ********* 1 Inserted by the SEBI (Mutual Funds) (Amendment) Regulations, 2008, w.e.f. 16-4-2008.