Securities and Exchange Board of India in Sept 2014 introduced bill to
govern the market for real estate investment in India. The REITs Regulations
were framed towards regulating investments in REITs. The REITs Regulations,
inter alia, establish that the registration requirements, procedure of
registration, and eligibility requirements of REITs as well as that the primary
parties of the REITs. REITs are set up as a trust under the Indian Trusts Act,
1882 and instrument of trust is in the shape of a deed duly registered in India
under the provisions of the Registration Act, 1908. The trust deed is necessary
to set out its main objective is to undertake the activity of REITs and should
also include the responsibilities of the trustees.
Preliminary Parties to a REIT are sponsor, manager and trustee or manager).
Each to hold minimum 5% of units of REIT on post initial offer basis.
Cumulative holding to be at least 15% of all outstanding units at all times.
Should collectively hold minimum 25% of the total number of units of REIT after
initial offer on post issue basis. Lock-in period of 3 years for upto 25% of
the units and lock-in period of 1 year for holding exceeding 25%. Cumulative
net worth not less than INR 1 billion individual net worth not less than INR
200million for a body corporate or company. Net tangible assets not less than
INR 100 million . At least two key personnel having not less than five years
experience in fund management or advisory services or property management in
the real estate sector or in development of real estate.
Real Estate Institute Of India is Real Estate Focused Industry Think Tank With The Sole Purpose Of Providing Value Inputs For Industry Benefit. Key Areas Will Be Education & Consulting . In spite Of Being Largest Provider Of Jobs In India Real Estate Was Largely Unregulated. Now With RERA Implementation Industry Is Looking At Regulated Market And Will Need More Trained Man Power. REII Is Poised To Take Leadership Position In This Domain. It Will Conduct Surveys,Research And Seminars For The Benefit Of Stake Holders.