Sebi allows strategic investors to invest up to 25% in REITs and InvITs
Securities market regulator Sebi has eased norms for real estate investments trusts (REITs) and infrastructure investment trusts (InvITs) to raise funds from strategic investors.
 
According to a Sebi circular, REITs and InvITs can invite subscriptions from strategic investors.
 
"The strategic investor(s) shall, either jointly or severally, invest not less than 5 per cent and not more than 25 per cent of the total offer size," Sebi said in a circular issued on Thursday.
 
"The investment manager or manager on behalf of the InvIT or REIT, shall enter into a binding unit subscription agreement with the strategic investor(s), which propose(s) to invest in the public issue of InvIT or REIT."
 
The circular further states that subscription price per unit, "payable by the strategic investor(s), shall be set out in the unit subscription agreement and the entire subscription price shall be deposited in a special escrow account prior to opening of the public issue".
 
"The price at which the strategic investor(s) has or have agreed to buy units of the InvIT or REIT shall not be less than the issue price determined in the public issue," the circular reads.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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    Breakthrough for Harried Property-buyers
    There is a significant breakthrough for thousands of people who are at the mercy of large builders after having paid for property, when they run into financial trouble. Media reports indicate that in two cases, Jaypee Infratech and the Aamrapali group, the insolvency regulator has brought in a special provision to protect the home-buyers. It has said that the claims of property-buyers would be treated on par with those of other creditors, such as banks. This gives investors a fighting chance of protecting their investment in the under-construction homes in buildings projects that are left incomplete by beleaguered realty companies.
     
    The Insolvency and Bankruptcy Board of India (IBBI), in charge of implementing the Insolvency and Bankruptcy Code (IBC), has said in a formal notification that it has introduced Form F which has to be filed by property-buyers to submit their claims it. According to media reports, this still does not allow property owners to approach the National Company Law Tribunal (NCLT) directly; but their claims would not be pushed to the bottom of the heap. It is not clear how this change would work in practice, since most beleaguered builders have gone on to raise funds against the security of buildings, for which they have already collected funds from individuals against the sale of flats. It is only when the NCLT, finally, disposes the cases of Jaypee Infratech (which has over 32,000 affected property-buyers) and the Aamrapali group (30,000 affected persons), will we really know whether property-buyers’ rights are fully protected. For now, they have a fighting chance of safeguarding their investments in these companies. 
     
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    Gera on RERA

    RERA, or Real Estate (Regulation and Development) Act 2016 (quite a mouthful), is on the tongues of so many people-politicians, government officials, builders, developers, contractors, buyers. Most are agreed it’s a good thing, this Act of kindness by the government. But don’t bet on everybody agreeing on it. Builders, for instance, surely wouldn’t like to be seen as the bad boys of the industry, lurking to pounce on unsuspecting buyers and rob them of their lifetime’s savings. Gera Development’s Rohit Gera has a slightly different take on this issue. While he says it is time to change course, he also has a dig at the system. He says the builder is the fall guy. “Bad building—bad builder; funds diverted—greedy builder.”

     

    Greed, whose? He asks. What about the landlord, who won’t sell without cash? What about the buyer, who won’t buy without cash? What about the government official who won’t pass a building plan without cash?

     

    Now, now, Mr Gera is not attacking RERA. He is merely hoping all this corruption is swept away. He calls this a ‘golden opportunity’ to clear the trash. Otherwise, years later, we would all be still saying, “I wish, I wish, I wish.” He ends on this sombre note. So please note, ye babus, clean up your own backyard too, says Gera on RERA, obliquely.

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