SEBI has amended the InvIT and REIT Regulations to provide, amongst others, for the induction of a sponsor with the approval of unit holders, exit option to dissenting unit holders, declassification of status of a sponsor, among others, as under:
In the REIT regulations the requirement that the sponsor(s) and sponsor group(s) together hold not less than fifteen per cent. of the outstanding units of the listed REIT and that each of the sponsor individually shall hold not less than five per cent. of the outstanding units of the listed REIT at all times has been omitted. Further, the requirement of approval of unit holders in case the value of the units held by a person along with its associates, other than the sponsor(s) and its associates, exceeds fifty per cent. of the value of outstanding REIT units, prior to acquiring any further unit, has been omitted.
To refer to the notification of the SEBI (Infrastructure Investment Trusts) (Amendment) Regulations 2020 and the SEBI (Real Estate Investment Trusts) (Amendment) Regulations 2020, both dated 16 June 2020, click here and here.
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