Okay, here's the policy analysis report based on the provided text.
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Real Estate Investment Trusts (REITs) Amendment Regulations, 2022, as published in the Gazette of India on November 9, 2022. The amendment modifies the Securities and Exchange Board of India Real Estate Investment Trusts Regulations, 2014. The key changes involve regulations concerning the minimum holding period for sponsors and sponsor groups in REITs and their liability. This amendment aims to reinforce sponsor commitment and accountability within REIT structures.
**2. Introduction:**
This report aims to provide an informative overview of the Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2022, based solely on the text provided. It will analyze the key changes introduced by the amendment and their potential implications for stakeholders.
**3. Policy Overview:**
* **Original Policy:** The amendment modifies the Securities and Exchange Board of India Real Estate Investment Trusts Regulations, 2014.
* **Core Objectives (Inferred):** The original REITs Regulations likely aimed to establish a framework for the creation and operation of Real Estate Investment Trusts in India. The amendment suggests an ongoing effort to refine and strengthen the regulatory framework, specifically regarding sponsor accountability and long-term commitment.
**4. Background and Rationale:**
The amendment appears to address the need for sustained commitment and accountability from sponsors and sponsor groups within REITs. The changes to the minimum holding period and the addition of a liability clause suggest a potential concern that sponsors might reduce their stake too quickly or avoid responsibility for actions related to the formation and asset transfer to the REIT. The amendment is likely intended to mitigate these risks and enhance investor confidence.
**5. Key Provisions / Changes:**
This section focuses on the changes introduced by the amendment.
* **Regulation 11 Amendment:** The amendment specifically targets Regulation 11 of the Securities and Exchange Board of India Real Estate Investment Trusts Regulations, 2014.
* **Change 1: Subregulation 3 Substitution:** Subregulation 3 of Regulation 11 is substituted. The *new* subregulation 3 states: "The sponsors and sponsor groups shall collectively hold a minimum of fifteen percent of the total units of the REIT for a period of at least three years from the date of listing of such units pursuant to initial offer on a postissue basis: Provided that any holding of the sponsors and sponsor groups exceeding the minimum holding, shall be held for a period of atleast one year from the date of listing of such units."
* **Effect of Change:** This change mandates a minimum holding period of three years for at least 15% of the REIT units held by sponsors and sponsor groups after the initial listing. Holdings exceeding this minimum must be held for at least one year from the listing date. This enforces a longer-term commitment from sponsors.
* **Change 2: Subregulation 4 Insertion:** A new subregulation 4 is inserted after subregulation 3. The *new* subregulation 4 states: "Notwithstanding anything contained in any contract or agreement, the sponsors and the sponsor groups shall continue to be liable to the REIT, trustees and unit holders for all acts of commission or omission, representation or covenants related to the formation of the REIT and the sale or transfer of assets or holdco or SPV to the REIT."
* **Effect of Change:** This provision establishes a clear and enduring liability for sponsors and sponsor groups towards the REIT, trustees, and unit holders. This liability extends to acts of commission or omission and representations related to the REIT's formation and asset transfer, even if existing contracts or agreements suggest otherwise. This strengthens the accountability of sponsors.
**6. Target Audience and Stakeholders:**
Based on the text, the primary target audience and stakeholders directly affected by this amendment are:
* **Sponsors and Sponsor Groups of REITs:** The amendment directly regulates their holding periods and liabilities.
* **Real Estate Investment Trusts (REITs):** The provisions affect the governance and sponsor relationships within REITs.
* **Trustees of REITs:** The liability clause directly impacts their recourse in case of sponsor misconduct.
* **Unit Holders (Investors) in REITs:** The changes are intended to protect their interests by ensuring sponsor commitment and accountability.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Securities and Exchange Board of India (SEBI) is the responsible body for implementing and enforcing these regulations.
* **Timelines:** The amendment came into force on November 9, 2022, the date of its publication in the Official Gazette (as stated in point 2).
* The changes to holding period requirements are applicable from the date of the amendment onwards.
* The liability clause is immediately effective.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes introduced by the amendment are:
* **Increased Sponsor Commitment:** The longer minimum holding period encourages sponsors to have a sustained interest in the long-term performance of the REIT.
* **Enhanced Accountability:** The liability clause deters misconduct by sponsors related to the formation and asset transfer to the REIT.
* **Greater Investor Confidence:** The strengthened sponsor commitment and accountability should enhance investor confidence in REITs.
* **Improved Governance:** The amendment likely aims to improve the overall governance and stability of REITs in the Indian market.
**9. Conclusion:**
The SEBI Real Estate Investment Trusts Amendment Regulations, 2022, represents a significant step towards strengthening the regulatory framework for REITs in India. By increasing the minimum holding period for sponsors and establishing a clear liability clause, the amendment aims to ensure greater sponsor commitment, accountability, and investor protection. These changes are likely to have a positive impact on the long-term stability and growth of the REIT market.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body responsible for securities market regulation in India.
Securities and Exchange Board of India Act, 1992: The act of parliament that established the Securities and Exchange Board of India and defines its powers and functions.
Securities and Exchange Board of India Real Estate Investment Trusts Regulations, 2014: Regulations pertaining to Real Estate Investment Trusts (REITs) as formulated by the Securities and Exchange Board of India.
Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2022: Amendment regulations to the 2014 REIT regulations by SEBI.
Mumbai: City in Maharashtra, location of SEBI's notification.
Madhabi Puri Buch: Chairman of the Securities and Exchange Board of India.
Official Gazette: The official government publication where regulations are published.
REIT: Real Estate Investment Trust
Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2016: Amendment regulations to the 2014 REIT regulations by SEBI, published in 2016.
Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2017: Amendment regulations to the 2014 REIT regulations by SEBI, published in 2017.
Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2018: Amendment regulations to the 2014 REIT regulations by SEBI, published in 2018.
Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2019: Amendment regulations to the 2014 REIT regulations by SEBI, published in 2019.
Securities and Exchange Board of India Regulatory Sandbox Amendment Regulations, 2020: Amendment regulations by SEBI related to Regulatory Sandbox, published in 2020.
Securities and Exchange Board of India Real Estate Investment Trusts Second Amendment Regulations, 2020: Amendment regulations to the 2014 REIT regulations by SEBI, published in 2020.
Securities and Exchange Board of India Real Estate Investment Trusts Amendment Regulations, 2021: Amendment regulations to the 2014 REIT regulations by SEBI, published in 2021.
SEBI Regulatory Sandbox Amendment Regulations, 2021: Amendment regulations by SEBI related to Regulatory Sandbox, published in 2021.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-एम.एxxचxG.-IअDE.-x1x0x1 12022-240167
CG-MH-E-10112022-240167
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 551] नई ददल्ली, ब धिार, निम्ब र 9, 2022/कार्ततक 18, 1944
No. 551] NEW DELHI, WEDNESDAY, NOVEMBER 9, 2022/KARTIKA 18, 1944
भारतीय प्रजतभजू त और जिजनमय बोड ड
अजधसचू ना
मब ं ई, 9 निम् बर, 2022
भारतीय प्रजतभजू त और जिजनमय बोडड
(ररयल इस्ट्टेट जनििे न्यास) (सिं ोधन) जिजनयम, 2022
स.ं सबे ी/एलएडी-एनआरओ/जीएन/2022/100.— बोड,ड भारतीय प्रजतभूजत और जिजनमय बोडड अजधजनयम,
1992 (1992 का 15) की धारा 11 तथा धारा 12 के साथ परित धारा 30 के तहत गई िजियों का प्रयोग करत े
हुए एतद्द्वारा भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) जिजनयम, 2014 का और संिोधन करने के
जलए जनम्नजलजखत जिजनयम बनाता ह,ै अथाडत:् —
1. इन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन) जिजनयम, 2022
कहा जा सकेगा ।
2. ये जिजनयम राजपत्र म ेंइनके प्रकािन की तारीख को लागू होंग े।
3. भारतीय प्रजतभूजत और जिजनमय बोड ड (ररयल इस्ट्टेट जनिेि न्यास) जिजनयम, 2014 म,ें -
I. जिजनयम 11 म,ें
i. उप-जिजनयम (3) के स्ट्थान पर उप-जिजनयम आ जाएगा, —
"(3) प्रायोजक और प्रायोजक समूह, दोनों जमलाकर, आरंजभक प्रस्ट्ताि (ऑफर) के बाद [जनगडम-
पश्चात (पोस्ट्ट-इश्यू) आधार पर] ररयल इस्ट्टेट जनिेि न्यास की यूजनटों के सूचीबद्ध (जलस्ट्ट) होन े
की तारीख से कम से कम तीन िर्षों की अिजध तक ररयल इस्ट्टेट जनिेि न्यास की क ल यूजनटों में
से कम से कम पद्रंह प्रजतित धारण करेंगेेः
7429 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
परंत यह दक प्रायोजक (प्रायोजकों) और प्रायोजक समूह (समूहों) के पास जनधाडररत न्यनूतम
धाररता (होल्ल्डग) से अजधक जजतनी भी धाररता (होल्ल्डग) होगी, िह ऐसी यूजनटों के सूचीबद्ध
(जलस्ट्ट) होन ेकी तारीख स ेकम से कम एक िर्ष डकी अिजध तक धारण की जाएगी ।"
ii. उप- (3) के बाद, जनम्नजलजखत उप- जोडा जाएगा,
“(4) दकसी संजिदा (कॉण्रैक्ट) या करार (एग्रीमेंट) म ेंदी हुई दकसी बात के होत ेहुए भी,
प्रायोजक और प्रायोजक समूह ररयल इस्ट्टेट जनिेि न्यास, न्याजसयों (रस्ट्टी) और यूजनटधारकों
के प्रजत जजम्मेदार रहगें,े दिर चाह ेररयल इस्ट्टेट जनिेि न्यास के गिन के संबंध में और
आजस्ट्तयों (असेट्स) या जनयंत्री (धाररता / होल्ल्डग) कंपनी या एसपीिी की जबक्री या अंतरण
(रांसिर) ररयल इस्ट्टेट जनिेि न्यास को दकए जाने के संबंध म ेंजो क छ भी दकया गया हो या
जो क छ न दकया गया हो या जो क छ भी प्रस्ट्तत दकया गया हो या उनसे संबंजधत जो भी ित ें
आदद हों उनके संबंध म ें।”
माधबी प री ब च, अध्यक्ष
[जिज्ञापन-III/4/असा./374/2022-23]
पाद रटप्पण :
1. भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) जिजनयम, 2014, स.ं
एल.ए.डी./एन.आर.ओ./जी.एन./2014-15/11/1576 द्वारा, 26 जसतम्बर, 2014 को भारत के राजपत्र म ें
प्रकाजित हुए थ े।
2. भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) जिजनयम, 2014 तत्पश्चात् –
क. 30 निम्बर, 2016 स े भारतीय प्रजतभूजत और जिजनमय बोड ड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन)
जिजनयम, 2016, सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/022, द्वारा
ख. 15 ददसम्बर, 2017 स े भारतीय प्रजतभूजत और जिजनमय बोड ड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन)
जिजनयम, 2017, सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2017-18/022, द्वारा
ग. 10 अप्रैल, 2018 स े भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन)
जिजनयम, 2018, सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2018/06, द्वारा
घ. 22 अप्रैल, 2019 स े भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन)
जिजनयम, 2019, सं. सेबी/एल.ए.डी.एन.आर.ओ./जी.एन./2019/09, द्वारा
ङ. 2 माचड, 2020 स े भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन)
जिजनयम, 2020, सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2020/06, द्वारा
च. 17 अप्रैल, 2020 स े भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधन) जिजनयम,
2020, स.ं सेबी/एल.ए.डी.-एनआरओ/जीएन/2020/10, द्वारा
छ. 16 , 2020 स े भारतीय प्रजतभूजत और जिजनमय बोडड (ररयल इस्ट्टेट जनिेि न्यास) ( र संिोधन)
जिजनयम, 2020, सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2020/16, द्वारा
ज. 30 ज लाई, 2021 स े भारतीय प्रजतभूजत और जिजनमय बोड ड (ररयल इस्ट्टेट जनिेि न्यास) (संिोधन)
जिजनयम, 2021, सं. सेबी/एलएडी-एनआरओ/जीएन/2021/28, द्वारा
झ. 3 अगस्ट्त, 2021 से भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधन) जिजनयम,
2021, स.ं सेबी/एलएडी-एनआरओ/जीएन/2021/30, द्वारा
संिोजधत हुए थ े।[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 3
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 9th November, 2022
SECURITIES AND EXCHANGE BOARD OF INDIA (REAL ESTATE INVESTMENT TRUSTS)
(AMENDMENT) REGULATIONS, 2022
No. SEBI/LAD-NRO/GN/2022/100.—In exercise of the powers conferred under section 30 read with
sections 11 and 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the
following regulations to further amend the Securities and Exchange Board of India (Real Estate Investment Trusts)
Regulations, 2014, namely: —
1. These regulations may be called the Securities and Exchange Board of India (Real Estate Investment Trusts)
(Amendment) Regulations, 2022.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014,
I. in regulation 11,
i. sub-regulation (3) shall be substituted with the following sub-regulation, -
“(3) The sponsor(s) and sponsor group(s) shall collectively hold a minimum of fifteen percent of the
total units of the REIT for a period of at least three years from the date of listing of such units pursuant
to initial offer on a post-issue basis:
Provided that any holding of the sponsor(s) and sponsor group(s) exceeding the minimum holding, shall
be held for a period of atleast one year from the date of listing of such units.”
ii. after sub-regulation (3), following sub-regulation shall be inserted,
“(4) Notwithstanding anything contained in any contract or agreement, the sponsor(s) and the sponsor
group(s) shall continue to be liable to the REIT, trustees and unit holders for all acts of commission or
omission, representation or covenants related to the formation of the REIT and the sale or transfer of
assets or holdco or SPV to the REIT.”
MADHABI PURI BUCH, Chairman
[ADVT.-III/4/Exty./374/2022-23]
Footnotes:
1. The Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 was published in
the Gazette of India on September 26, 2014 vide No. LAD-NRO/GN/2014/15/11/1576.
2. The Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 was subsequently
amended by the –
a. Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2016,
vide No. SEBI/LAD/NRO/GN/2016-17/022, with effect from November 30, 2016;
b. Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2017,
vide No. SEBI/LAD-NRO/GN/2017-18/022, with effect from December 15, 2017.
c. Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2018,
vide No. SEBI/LAD-NRO/GN/2018/06, with effect from April 10, 2018.
d. Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2019,
vide No. SEBI/LAD-NRO/GN/2019/09, with effect from April 22, 2019.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
e. Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2020,
vide No. SEBI/LAD-NRO/GN/2020/06, with effect from March 02, 2020.
f. Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020, vide No.
SEBI/LAD-NRO/GN/2020/10, with effect from April 17, 2020.
g. Securities and Exchange Board of India (Real Estate Investment Trusts) (Second Amendment) Regulations,
2020, vide No. SEBI/LAD-NRO/GN/2020/16 with effect from June 16, 2020.
h. Securities and Exchange Board of India (Real Estate Investment Trusts) (Amendment) Regulations, 2021
vide No. SEBI/LAD-NRO/GN/2021/28 with effect from July 30, 2021.
i. SEBI (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/30 with
effect from August 03, 2021.
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and Published by the Controller of Publications, Delhi-110054.