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      <page pageid="437" ns="0" title="Real Estate Investment Trusts (REITs)">
        <revisions>
          <rev xml:space="preserve">&lt;p&gt;Real Estate investment Trusts or REITs  are mutual fund like institutions that enable investments into the real estate  sector by pooling small sums of money from multitude of individual investors for  directly investing in real estate properties so as to return a portion of the  income (after deducting expenditures) to unit holders of REITs, who pooled in  the money. &lt;/p&gt;
&lt;p&gt;  A REIT in India is allowed to invest  mainly in completed and revenue generating assets and other approved  investments. Further, REIT will have to distribute majority of its income among  the unit holders. &lt;/p&gt;
&lt;p&gt;  REITS are regulated by the securities  market regulator in India- [http://www.sebi.gov.in/sebiweb/ Securities and Exchange Board of India] (SEBI). In September 2014, SEBI notified the [http://www.sebi.gov.in/cms/sebi_data/attachdocs/1411722678653.pdf SEBI (Real Estate Investment trusts) Regulations, 2014] for providing a framework for registration and  regulation of REITs in India. &lt;/p&gt;
&lt;p&gt; REIT can invest in commercial real  estate assets, either directly or through Special Purpose Vehicle (SPVs) which  invests more than 80% of its assets in properties. If REIT is investing through  an SPV, REIT has to hold  controlling interest with not less than 50% of the equity share capital or  interest in SPV.&lt;/p&gt;
&lt;p&gt;  Here &amp;quot;real estate&amp;quot; refers to land  and any permanently attached improvements to it, whether on leasehold or  freehold, and includes buildings, sheds, garages, fences, fittings, fixtures,  warehouses, car parks, etc. and any other assets incidental to the ownership of  real estate. But the definition does not include mortgage and any asset falling  under the purview of 'infrastructure' as defined vide [http://finmin.nic.in/the_ministry/dept_eco_affairs/infrastructure_div/harmonisedmasterlist_infrastructure.pdf Notification of Ministry of Finance dated October 07, 2013].&lt;/p&gt;
&lt;p&gt;  This is because a modified REITs type  structure for infrastructure projects is done through [http://www.sebi.gov.in/cms/sebi_data/attachdocs/1411722495005.pdf Infrastructure Investment Trusts] (InvITs)  for [http://arthapedia.in/index.php?title=Public_Private_Partnership_(PPP) PPP] and other infrastructure projects. &lt;/p&gt;
&lt;p align=&quot;center&quot;&gt;&lt;strong&gt;&lt;u&gt;Main Features of REITs in India&lt;/u&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;p align=&quot;left&quot;&gt;&lt;strong&gt;&lt;u&gt;Structure  of REITs&lt;/u&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
  &lt;li&gt;REITs are set up as trust under the  provisions of the Indian Trusts Act, 1882 and are registered with SEBI. Like a  mutual fund, it has three parties - Trustee, Sponsor(s) and Manager - to avoid  any conflict of interest issues. &lt;/li&gt;
  &lt;li&gt;The Trustee generally has an overseeing  role on the activities of the REIT. &lt;/li&gt;
  &lt;li&gt;Sponsor(s), collectively hold atleast  25% in the REIT for atleast 3 years and 15% thereafter. This is to ensure skin  in the game. Sponsor&amp;rsquo;s responsibilities are to set up the REIT and appointment  of the Trustee.&lt;/li&gt;
  &lt;li&gt;Manager means a company or LLP or body corporate  incorporated in India which manages assets and investments of the REIT and  undertakes operational activities of the REIT. In short, the manager assumes the operational responsibilities  pertaining to the REIT. A manager needs to have at least 5 years of related  experience coupled with other requirements such as minimum net worth, manpower  with sufficient relevant experience, etc. &lt;/li&gt;
  &lt;li&gt;The trustee of a REIT is a SEBI  registered debenture trustee who is not an associate of the Sponsor.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;&lt;u&gt;Offer  of units, listing, investments and distribution&lt;/u&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
  &lt;li&gt;Value of the assets owned/proposed to be  owned by REIT should be atleast Rs 500 crore.&lt;/li&gt;
  &lt;li&gt;The REIT can raise funds initially  through an initial offer and once listed, may subsequently raise funds through  follow-on offers.&lt;/li&gt;
  &lt;li&gt;Minimum issue size for initial offer is  Rs 250 crore with a minimum public float of 25%.&lt;/li&gt;
  &lt;li&gt;Listing of units in a stock exchange is  mandatory in India. &lt;/li&gt;
  &lt;li&gt;The minimum subscription size for units  of REIT is Rs 2 lakhs and the trading lot is specified at Rs 1 lakhs so as to  allow only reasonably informed investors into this market. &lt;/li&gt;
  &lt;li style=&quot;margin-left:15px;&quot;&gt;Permitted Investments by REIT are:&lt;/li&gt;
  &lt;li style=&quot;margin-left:15px;&quot;&gt;Atleast 80% in completed and revenue  generating properties. &lt;/li&gt;
  &lt;li&gt;Not  more than 20% in developmental properties and other eligible investments.  Provided, investment in developmental assets is not more than 10% of the value  of REIT assets. &lt;/li&gt;
  &lt;li&gt;REIT to invest in at least 2 projects  with not more than 60% of value of assets invested in one project. Related  party transactions are subject to strict scrutiny. &lt;/li&gt;
  &lt;li&gt;REIT to distribute not less than 90% of  the net distributable cash flows, subject to applicable laws, to its investors.&lt;/li&gt;
  &lt;li&gt;Maximum borrowing permitted is 49% of  the value of the REIT assets. Further, credit rating and post 25% unit holders  approval are mandatory to raise debt. &lt;/li&gt;
  &lt;li&gt;Full valuation to be carried out atleast  once a year and half yearly updation of the same has to be carried out.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;&lt;u&gt;Tax  treatments of REITs in India&lt;/u&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
  &lt;li&gt;REITs are given &amp;quot;pass through  status&amp;quot; from the perspective of income tax. Pass through transactions are  those transactions where the ultimate beneficiary, namely, the investor  receives the income (as dividends or interests payments) arising out of the  loans/bonds/transactions done by a Trust. Since income is ultimately going to  the investor, the Trust is exempted from paying the tax while the ultimate  beneficiary is taxed. Thus, rental income from real estate assets directly held  by REITs are allowed to pass through and are taxed in the hands of the unit  holders of the REIT.&amp;nbsp;This was announced in July 2014 in the [http://indiabudget.nic.in/budget2014-2015/bspeecha.asp Union Budget 2014-15]. &lt;/li&gt;
  &lt;li&gt;Further, [http://indiabudget.nic.in/bspeecha.asp Union Budget  2015-16] proposed to rationalise the capital  gains regime for the sponsors exiting at the time of listing of the units of  REITs and InvITs, subject to payment of Securities Transaction Tax (STT).  The rental income of REITs from their own  assets will have pass through facility. &lt;/li&gt;
&lt;li&gt;The [http://indiabudget.nic.in/ Union Budget 2016-17] has withdrawn the 17%  Dividend Distribution Tax that is applicable on any distribution made out of income of SPV to the REITs and INVITs, having specified shareholding.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&lt;strong&gt;&lt;u&gt;Impact  of REITs&lt;/u&gt;&lt;/strong&gt;&lt;/p&gt;
&lt;ul&gt;
  &lt;li&gt;The introduction of REITs in India is  expected to significantly benefit the investors as well as the developers in  the real estate industry.  REIT are  expected to provide an exit route to Indian developers who are struggling to  reduce debt, while on the other hand it gives investors the ability to buy into  the country&amp;rsquo;s property market which otherwise may be out of their reach due to  the sheer size of the amount to be spent for acquiring such properties. &lt;/li&gt;
  &lt;li&gt;Thus, from the perspective of investors,  holding units of REITs is a substitute for investing directly in real estate. This  is similar to investing in [http://www.nse-india.com/products/content/equities/etfs/gold.htm Gold Exchange Traded Funds] (Gold-ETFs). &lt;/li&gt;
  &lt;li&gt;REITs would also enable diversification  of the portfolio of the investors and provide the investors a new product that  is regular income generating. &lt;/li&gt;
  &lt;li&gt;The freeing up of developer's capital is  expected to bring in more investments in real estate, thereby stimulating  growth. Funds locked up in various completed projects can be released to  facilitate new infrastructure projects to take off.   &lt;/li&gt;
  &lt;li&gt;Assets that may qualify to be included  in REITs may reach $20 billion by 2020 (according to an estimate by property  broker Cushman &amp;amp; Wakefield). In the first three to five years, as much as  $12 billion could be raised.&lt;/li&gt;
  &lt;li&gt;REITs will force much needed  transparency at least in the commercial sector, and lower the reliance on  financing from banks and incentivize developers to own and manage assets with a  long-term view. In a market where price data is almost impossible to come by,  this will be a revolution. It will help the investors in making more informed  investment decisions as returns can actually be analyzed rather than be based upon  anecdotes.&lt;/li&gt;
  &lt;li&gt;Opening up of REITs for foreign  investors with support from the budget on such inflows is expected to generate  substantial foreign interest for investment in REITs. &lt;/li&gt;
  &lt;li&gt;In time, it will help develop a more  mature and liquid market with broad participation from investors. &lt;/li&gt;
&lt;/ul&gt;



&lt;p&gt;&lt;strong&gt;&lt;u&gt;International  Comparison &lt;/u&gt;&lt;/strong&gt;&lt;br&gt;
Globally, framework for REIT exists in several  countries including United States of America, Australia, Singapore, Japan,  France, United Kingdom, etc. A comparison of Indian REITs with Singapore REITs  is given below. &lt;/p&gt;
&lt;table border=&quot;0&quot; cellspacing=&quot;0&quot; cellpadding=&quot;0&quot; width=&quot;100%&quot; class=&quot;table_formatting&quot;&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot; width=&quot;20%&quot;&gt;&lt;p align=&quot;left&quot;&gt;Type&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot; width=&quot;40%&quot;&gt;&lt;p align=&quot;left&quot;&gt;India&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot; width=&quot;40%&quot;&gt;&lt;p align=&quot;left&quot;&gt;Singapore&lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Legal    Structure&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Trust, with    Trustee, sponsor (s) and manager &lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Trust    with Trustee, sponsor (s) and manager &lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Manager&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Manager has to be an external company&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Manager has to be an external company&lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Identification    of Assets&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;A REIT has to identify assets prior to    making offer to public of units. &lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;A REIT has to identify assets prior to    making offer to public of units. &lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;%    of under construction assets allowed&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Investments    in developmental assets not more than 10% of gross asset value of the REIT    which have to be held at least 2 years after completion. &lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;The total contract value of property    development activities undertaken and investments in uncompleted property    developments should not exceed 10% of the property funds deposited property.&lt;br&gt;
      Further, such investment in permitted    only if the REIT intends to hold the developed property upon completion.&lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Such    funds are allowed to be listed?&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Yes, Mandatory&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Yes, but not mandatory&lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Activities    permitted&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;At least    75% of value of the REIT assets proportionately on a consolidated basis shall    be rent generating. &lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;At least    75% of the deposited property should be invested in income-producing real    estate&lt;br&gt;
      Not more    than 10% of revenue from sources other than rental and other specified    sources.&lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Income  Distribution&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;At least 90% of its net distributable income after tax to be    distributed. &lt;/li&gt;
      &lt;li&gt;If capital gains from sale of property proposed to be re-invested in    another property, no distribution required. If not proposed to be    re-invested, 90% of the capital gains to be distributed.&lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;At least 90% of its taxable ordinary income to be distributed in the    same financial year as it is received to qualify for tax transparency.&lt;/li&gt;
      &lt;li&gt;Not required to distribute capital gains &lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Permissible    investments&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Real estate    assets (freehold or leasehold) includes assets    incidental to ownership and operation of such real estate assets (Only Indian    assets). Investment may be directly in the properties or through an SPV    controlled by the REIT having at least 80% of their assets in real estate. A    REIT is not allowed to invest in units of another REIT.&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Listed or    unlisted debt of investee companies/mortgage backed securities. Investment    also allowed in equity shares of companies    listed on a recognized stock exchange in India which derive not less than 75%    of their operating income from Real Estate activity &lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Government Securities    and Money market instruments/Cash equivalents&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Investments in developmental assets not more than 10% of gross asset value of the    REIT which have to be held at least 2 years after completion. &lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Real estate, whether freehold or    leasehold, in or outside Singapore. An investment in real estate may be by    way of direct ownership or a shareholding in an unlisted special purpose    vehicle (&amp;ldquo;SPV&amp;rdquo;) constituted to hold or own real estate. An investment in another    property fund that is authorised will be considered as an investment in real    estate; &lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Real estate-related assets (listed or    unlisted debt securities and listed shares of or issued by property    corporations, mortgage-backed securities, other property funds, and assets    incidental to the ownership of real estate (e.g. furniture).), wherever the    issuers/assets/securities are incorporated/located/issued/traded; Investment    also allowed in listed or unlisted debt securities and listed shares of, or    issued, by local or foreign non-property corporations; &lt;/li&gt;
      &lt;/ul&gt;
      &lt;ul&gt;
        &lt;li&gt;Government Securities (issued on    behalf of the Singapore Government or governments of other countries) and    securities issued by a supranational agency or a Singapore statutory board    and cash and cash equivalent items.&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Investments in uncompleted property    developments not exceeding 10% of the property funds deposited property    subject to holding of the developed property upon completion.&lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Concentration    of investments&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;Minimum 2 projects with not more than    60% of the value of the assets, proportionately on a consolidated basis, in    one project.&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;No minimum    limit on no. of projects.&lt;/li&gt;
      &lt;li&gt;except for    non-real estate investments (5% in any one issuer's securities or any one    manager's funds)&lt;/li&gt;
      &lt;li&gt;For Listing –    Not more than 30% of gross assets invested in unlisted securities&lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Restrictions    on Shareholding&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;At least 25%    of the REIT's outstanding units must be held by public at all times    post-listing with at least 200 public unit holders.&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Minimum    Investment of Rs. 2 lakh per investor&lt;/li&gt;
        &lt;li&gt;Trading lot    size of Rs. 1 lakh in the secondary market&lt;/li&gt;
        &lt;li&gt;No restriction    on maximum shareholding &lt;/li&gt;
        &lt;li&gt;Approval of    unit holders required if shareholding of a non-sponsor crosses 50%.&lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;If listed, at    least 25% of the REIT's share capital or units is held by at least 500 public    shareholders&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;No minimum    investment limit per investor.&lt;/li&gt;
        &lt;li&gt;No minimum    trading lot size.&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;No restriction    on maximum shareholding &lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Takeover code    applies. &lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;&lt;strong&gt;Maximum Gearing Ratio&lt;/strong&gt;&lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Maximum 50% of    the aggregate gross asset value on a consolidated basis,  with requirement of credit rating and unit    holder approval post 25%&lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;60% (with    credit rating) 35% without credit rating&lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Regular    Disclosure requirements&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Annual and Half yearly disclosures&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Disclosures in initial offer document/follow-on offer document/other    offer document &lt;/li&gt;
        &lt;li&gt;Regular disclosures in terms of the listing agreement with the    exchanges&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Event-based disclosures&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Disclosures for related party transactions&lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Yearly disclosure    (apart from financials)&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Disclosures in    offer documents&lt;/li&gt;
      &lt;/ul&gt;
      &lt;ul&gt;
        &lt;li&gt;Listed REITS must    announce net tangible assets per share or per unit on a quarterly basis via    SGXNET and must comply with other regular disclosure requirements in listing    rules.&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;Event-based disclosures&lt;/li&gt;
      &lt;/ul&gt;
      &lt;ul&gt;
        &lt;li&gt;Disclosures for related party transactions &lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Valuation    of assets &lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Assets to be    valued fully (including site inspection) by an independent external valuer on    a yearly basis. Updation required on half-yearly basis. Full Valuation    including site inspection required for every purchase of asset and issue of    new units.&lt;/li&gt;
      &lt;li&gt;Valuer to be    registered valuer under Companies Act, 2013 and valuation in accordance with    International Valuation Standards/ICAI standards&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;In case of a    sale/ purchase of assets from a related party, two independent valuations of    those assets to be conducted.&lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Full valuation of real estate assets at least once a financial year    and may be required in case of issue of new units/redemption of units.&lt;/li&gt;
    &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;The Valuer must be independent, reputed, be authorized under any law    of the state or country where the valuation takes place to practice as a    valuer.&lt;/li&gt;
      &lt;/ul&gt;
      &lt;p&gt;&amp;nbsp;&lt;/p&gt;
      &lt;ul&gt;
        &lt;li&gt;For related party transactions, two independent valuations required    with one of the valuers commissioned independently by the trustee. &lt;/li&gt;
      &lt;/ul&gt;&lt;/td&gt;
  &lt;/tr&gt;
  &lt;tr&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;&lt;strong&gt;Sponsor    Holding&lt;/strong&gt;&lt;/p&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;ul&gt;
      &lt;li&gt;Multiple    sponsors allowed, subject to maximum 3, where each holds minimum of 5%.&lt;/li&gt;
      &lt;li&gt;Sponsor(s) to    hold, collectively, minimum 25% of the units of the REIT for a period of    atleast 3 years.&lt;/li&gt;
      &lt;li&gt;Minimum 15% of    the units to be held by sponsor(s) always. &lt;/li&gt;
      &lt;li&gt;Sponsor may    sell stake to another person post 3 years subject to minimum holding of 5%    and maximum number of sponsors at 3. Approval required from 75% unit holders    for any new sponsor/change in control of the sponsor. &lt;/li&gt;
      &lt;li&gt;Sponsor units    greater than 25% and non-sponsor holding prior to initial offer locked-in for    a period of 1 year. &lt;/li&gt;
    &lt;/ul&gt;&lt;/td&gt;
    &lt;td valign=&quot;top&quot;&gt;&lt;p&gt;No restrictions&lt;/p&gt;&lt;/td&gt;
  &lt;/tr&gt;
&lt;/table&gt;



==Also See==
*[http://www.arthapedia.in/index.php?title=Infrastructure_Investment_Trust_(InvITs) Infrastructure Investment Trust (InvITs)]


==Contributed by==
* [http://www.ies.gov.in/myaccount-profile-view.php?memid=393 Mr. Jaipal (IES 2011)]
*Email- [mailto:jpsharma79@gmail.com jpsharma79@gmail.com]

[[Category:concepts|RealEstateInvestmentTrusts(REITs)]]</rev>
        </revisions>
      </page>
      <page pageid="278" ns="0" title="Regional Rural Banks">
        <revisions>
          <rev xml:space="preserve">Regional Rural Banks (RRBs) are financial institutions which ensure adequate credit for agriculture and other rural sectors . Regional Rural Banks were set up on the basis of the recommendations of the Narasimham Working Group (1975),  and after the legislations of  the Regional Rural Banks Act, 1976. The first Regional Rural Bank “Prathama Grameen Bank” was set up on October 2, 1975.  At present there are 82 RRBs in India.

The equity of  a regional rural bank is held by the Central Government, concerned State Government and the Sponsor Bank in the proportion of 50:15:35. The RRBs combine the characteristics of a cooperative in terms of the familiarity of the rural problems and a commercial bank  in terms of its professionalism and ability to mobilise financial resources. Each RRB operates within the local limits  as notified by Government.
The main objectives of RRB’s are to provide credit and other facilities‚ especially to the small and marginal farmers‚ agricultural labourers artisans and small entrepreneurs in rural areas with the objective of bridging the credit gap in rural areas, checking the outflow of rural deposits to urban areas and reduce regional imbalances and increase rural employment generation.

The RRB’s have also been brought under the ambit of priority sector lending on par with the commercial banks.   Priority sector lending has been devised so that assistance from the banking system flowed in an increasing measure to the vital sectors of the economy and according to national priorities. Sectors like agriculture, small business, housing ,retail trade, education  are categorised as priority sector by Reserve Bank of India and a stipulated amount has to be lent to these sectors by the banks. As per the guidelines, domestic banks have to ensure that forty percent of their advances are accounted for the priority sector. Within the 40% priority target, 25% should go to weaker section or 10% of their total advances should go to the  weaker section .Weaker sections, under priority sector lending purposes, include scheduled castes, scheduled tribes, small and marginal farmers, artisans and self help groups.

RRBs have been finding it difficult to maintain their minimum Capital to Risk weighted Assets Ratio (CRAR) at the stipulated 9%.With a view to bring the CRAR of RRBs to at least 9 percent, the Dr. K. C. Chakrabarty Committee recommended recapitalisation support to the extent of Rs.2,200 crore to 40 RRBs in 21 States. The recapitalisation process started in 2010-11.

==References==
#http://www.nabard.org/pdf/report_financial/Chap_V.pdf
#http://www.rbi.org.in/scripts/AboutUsDisplay.aspx?pg=RegionalRuralBanks.htm


==Contributed by==
*[http://www.ies.gov.in/myaccount-profile-view.php?memid=316 Gayatri Nair, IES(2004)]
*Email- [mailto:gayatrinair25@gmail.com gayatrinair25@gmail.com]

[[Category:concepts|RegionalRuralBanks]]</rev>
        </revisions>
      </page>
    </pages>
  </query>
</api>