SEBI has announced a list of guidelines required for rights issue of units by listed real estate investment trusts (REITs). Here are the key highlights:
- Units proposed to be allotted should be listed on a stock exchange
- An in-principle approval of the stock exchange needs to be obtained
- No promoters, partners, or directors of the sponsor or manager or trustee of the REIT should be a fugitive economic offender. He/she should not be barred from the securities market
- Manager and lead merchant banker can decide the issue price of the rights issue
- The issue price will be disclosed in the letter of offer
- The record date should be announced to stock exchanges at least three working days prior to the record date
- If REIT withdraws the rights issue after announcing the record date it will not be eligible to make a listing for twelve months
- Rights issue can open within 3 months from the record date and remain open for at least 3 working days but not more than 15 working days
Manner of issuance of units
- Units of the rights issue will be credited to the demat account
- All investors would be required to mandatorily use Application Supported by Blocked Amount (ASBA) as a payment mode
- Full allotment of units will be made to unitholders who had applied and also to renouncee(s)