The Securities Exchange Board of India (SEBI) on July 05, 2023, issued a notification regarding amendments to guidelines for the preferential issued and institutional placement of units by a listed REIT.
SEBI issued circular SEBI/HO/DDHS/DDHS/CIR/P/2019/142 dated November 27, 2019, providing guidelines for the preferential issue and institutional placement of units by listed REITs (“Guidelines”).
The following has been amended-
Clause 2 of Annexure II of the SEBI circular dated November 27, 2019 (as amended), is modified as under:
“2. Pricing of Units The institutional placement shall be made at a price not less than the average of the weekly high and low of the closing prices of the units of the same class Page 2 of 2 quoted on the stock exchange during the two weeks preceding the relevant date:
Provided that the REIT may offer a discount of not more than five per cent on the price so calculated, subject to the approval of unitholders through a resolution as specified in the guideline.
2.1. Explanation: “relevant date” for the purpose of clauses related to institutional placement shall be the date of the meeting in which the board of directors of the manager decides to open the issue.”
This circular shall be applicable with immediate effect.
[Notification No.SEBI/HO/DDHS-PoD-2/P/CIR/2023/114]
