Regulation 26T - Investment conditions - Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014

1 [ Investment conditions. 26T. (1) The SPV shall directly and solely own all assets that are acquired or proposed to be acquired by the scheme of the SM REIT, of which SPV is the wholly owned subsidiary. (2) The scheme of the SM REIT shall invest at least ninety-five per cent. of the value of the schemes assets for each of its schemes in completed and revenue generating properties and shall not invest in under-construction or non-revenue generating real estate assets: Provided that up to five per cent. of the value of the schemes assets may be invested in liquid assets, which are unencumbered 2 [ : ] 3 [ Provided further that up to five per cent. of the value of the schemes assets may be invested in interest rate derivatives including interest rate futures, forward rate contract and interest rate swap, subject to the conditions as specified in clause (j) of sub-regulation (5) of regulation 18 of these regulations. ] 4 [ (2A) The investment conditions specified in sub-regulation (2) of this regulation shall be monitored on a half-yearly basis and at the time of acquisition of an asset: Provided that if such conditions are breached on account of market movements of the price of the underlying assets or securities or change in tenants or expiry of lease or sale of properties, the investment manager shall inform the same to the trustee and ensure that the conditions as specified in sub-regulation (2) of this regulation are satisfied within six months of such breach: Provided further that the period may be extended by another six months subject to the approval from the unitholders in accordance with clause (e) of sub-regulation (9) of regulation 26ZM of these regulations: Provided further that if such conditions as specified in sub-regulation (2) of this regulation are not satisfied within the permissible timeline, including extension of timeline approved by the unitholders, then the following shall be applicable - (i) the investment manager of SM REIT shall not float any new scheme of the SM REIT; (ii) the promoters, directors and key managerial personnel of the investment manager shall be debarred from setting up another SM REIT or associate with any other SM REIT or float any new scheme of such other SM REIT; (iii) the investment manager shall apply for delisting of the scheme of SM REIT; and (iv) any other measures as may be specified by the Board. ] (3) The scheme of SM REIT shall not be permitted to lend to any entity other than lending to its own SPV. (4) The SPV shall not be permitted to lend to any entity. ] ************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/166 dated 08-03-2024 2. Substituted vide F. No. SEBI/LAD-NRO/GN/2025/241 dated 22-04-2025 before it was read as, . 3. Inserted vide F. No. SEBI/LAD-NRO/GN/2025/241 dated 22-04-2025 4. Inserted vide F. No. SEBI/LAD-NRO/GN/2025/241 dated 22-04-2025