Recent guidelines by SEBI on preferential issue & institutional placement by listed REITs.

On Wednesday, the Securities and Exchange Board of India (SEBI) provided guidelines on the preferential issue of units and institutional placement of units by a listed Real Estate Investment Trust (REITs).

The regulator said that if it has been listed for a period of 12 months, a listed REIT may create a preferential issue of units or institutional placement of units under these guidelines.

The REIT has received in-principle clearance from the stock exchanges for listing proposed units to be issued in keeping with these guidelines and the REIT complies with all criteria for continuous listing.

It was specified by the regulator that none of the respective promoters, partners or directors of the sponsor or manager or trustee of the REIT should be a fugitive economic offender.

It also said that, until the expiry of six months from the date of prior institutional placement made compatible with one or more special resolutions, the REIT will not make any additional institutional placement.

Any private placement bid or allotment shall not be rendered to more than 200 investors, except institutional investors, in a financial year, it said.