General purposes can include identified purposes for

General purposes can include identified purposes for

ZCZC
PRI COM ECO ESPL
.NEWDELHI DCM50
SEBI-TRUST 2 LAST
General purposes can include identified purposes for
which no specific amount is allocated in the offer document.
This will be subject to the condition that any issue-related expenses will not be considered as part of general purpose “merely because no specific amount has been allocated for such expenses in the offer document”.
The amount for general purposes will not exceed 10 per cent of the funds raised by REIT and InvIT by issuance of units.
It has been made clear that there should be no multiple classes of units of REITs and InvITs while subordinate ones can be issued only to sponsors and its associates. This is also subject to the requirement that such subordinate units should carry only inferior voting or any other rights compared with other units.
Among others, these trusts will have to refund subscription amount, along with interest to allottees, in case they do not receive listing permission from the stock exchange.
“In the event of non-receipt of listing permission from the stock exchange(s) or withdrawal of observation letter issued by the board, wherever applicable, the units shall not be eligible for listing,” the regulations stated.
In such cases, REITs and InvITs will have to “refund the subscription money, if any, to the respective allottees immediately along with interest at the rate of 15 per cent per annum from the date of allotment”.
With regard to REITs, Sebi said the minimum number of unit holders other than sponsor(s), its related parties and associates forming part of the public will not be not less than 200.
“For an REIT raising funds through an initial offer, the units proposed to be offered to the public through such initial offer shall not be less than 25 per cent of the total of the outstanding units of REIT,” Sebi noted. PTI SP SBT ARD
12011500
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