TMI BlogInvestment conditions and distribution policyX X X X Extracts X X X X X X X X Extracts X X X X ..... n agreement 4 [has been] entered into with such shareholders or partners to that effect prior to investment in the SPV]: 5 [Provided that the shareholders agreement or partnership agreement shall provide for an appropriate mechanism for resolution of disputes between the REIT and the other shareholders or partners in the SPV: Provided further that the provisions of these regulations shall prevail in case of inconsistencies between such agreement(s) and the obligations cast upon a REIT under these regulations.] 6 [(b) the manager, in consultation with the trustee, shall appoint atleast such number of nominees on the board of directors or the governing board of such SPVs, as applicable, which are in proportion to the shareholding or holding interest of the REIT in the SPV;] (c) the manager shall ensure that in every meeting including annual general meeting of the SPV, the voting of the REIT is exercised 7 [***]. 8 [(3A) The REIT may invest in properties through holdco subject 9 [to] the following,- (a) the ultimate holding interest of the REIT in the underlying SPV(s) is not less than twenty six per cent; (b) no other shareholder or partner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be held by the REIT for not less than three years after completion; (ii) under-construction properties which are a part of the existing income generating properties owned by the REIT which shall be held by the REIT for not less than three years after completion; (iii) completed and not rent generating properties which shall be held by the REIT for not less than three years from date of purchase; (b) listed or unlisted debt of companies or body corporate in real estate sector: Provided that this shall not include any investment made in debt of the 22 [holdco and/or SPVs]; (c) mortgage backed securities; (d) equity shares of companies 23 [which are] listed on a recognized stock exchange in India which derive not less than seventy five per cent. of their operating income from real estate activity as per the audited accounts of the previous financial year; 24 [ (da) unlisted equity shares of companies which derive not less than seventy five per cent. of their operating income from real estate activity as per the audited accounts of the previous financial year: Provided that the investments, made through unlisted equity shares of a company, in under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Schedule IV]: Provided that investment in debt securities shall not be considered as lending. (14) With respect to investment in leasehold properties, the manager shall consider the remaining term of the lease, the objectives of the REIT, the lease profile of the REIT s existing real estate assets and any other factors as may be relevant, prior to making such investment. (15) In case of any co-investment with any person(s) in any transaction,- (a) the investment by the other person(s) shall not be at terms more favourable than those to the REIT; (b) the investment shall not provide any rights to the person(s) which shall prevent the REIT from complying with the provisions of these regulations; (c) the agreement with such person(s) shall include the minimum percentage of distributable cash flows that will be distributed and entitlement of the REIT to receive not less than pro rata distributions and mode for resolution of any disputes between the REIT and the other person(s). (16) With respect to distributions made by the REIT and the 36 [holdco and/or] SPV,- (a) not less than ninety per cent. of net distributable cash flows of the SPV shall be distributed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the amount transferred to Investor Protection and Education fund shall not bear any interest. ] 47 [ (g) the unclaimed or unpaid amount of a person that has been transferred to the Investor Protection and Education Fund in terms of sub-clause (f), may be claimed in such manner as may be specified by the Board. ] (17) No schemes shall be launched under the REIT. (18) The Board may specify any additional conditions for investments by the REIT as it deems fit. ********** 1 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 2 Substituted for the word have by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 3 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 4 Substituted for the words shall be by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 5 Inserted by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 6 Substi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lations, 2016, w.e.f. 30.11.2016 22 Substituted for SPV by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 23 Inserted by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 24 Inserted by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 25 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 26 Substituted for seventy five by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 27 Inserted by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. 28 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 29 Omitted by the Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018, w.e.f. 10.04.2018. Prior to omission, the clause read as: (7) Not less than seventy five per cent. of value of the REIT assets proportionately o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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