The Securities and Exchange Board of India (SEBI) on October 30, 2024, issued a Consultation Paper on Ease of Doing Business for Small and Medium REITS (SM REITS).
The objective of this consultation paper is to seek comments/views/suggestions from the public on proposals related to the review of the regulatory framework for Small and Medium REITs (“SM REITs”).
The salient features of SM REITs include:
• ability to create separate scheme(s) for owning of real estate assets through Special Purpose Vehicle(s) (“SPVs”) constituted as companies in the form of wholly owned subsidiaries of the scheme of SM REIT, and
• hold asset value of at least Rs. 50 crores (vis-à-vis minimum asset value of Rs. 500 crores for REITs) with an aim to tap the immense potential in the real estate sector and to further develop the real estate market.
According to the notification of the regulatory framework for SM REIT, various workshops with prospective SM REIT applicants were held inter-alia to sensitize the industry about the recently introduced regulations. During these workshops, feedback has been received on various aspects concerning the framework for SM REITs. Based on inputs received from market participants in such workshops, this consultation paper contains proposals on the following three matters:
• Standardizing the disclosures in the scheme offer document
• Public issue process for a scheme of SM REIT
• Alignment of provisions for SM REITs vis-à-vis REITs
To promote ease of doing business and provide clarity to the market participants on various aspects, the detailed proposals on the aforementioned items are mentioned in this consultation paper.
Click on the Link to provide comments - https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComm
