Capital markets regulator Sebi is looking to come out with a framework for the issuance of subordinate units by REITs and InvITs to sponsors and their associates.Additionally, the regulator has proposed a framework for unit-based employee benefits (UBEB) in the context of REITs (real estate investment trusts) and InvITs (infrastructure investment trusts).
The Securities and Exchange Board of India (Sebi) has sought comments from the public till December 29 on the proposals.Under the proposed framework, subordinate units can be issued only to the sponsor, its associates and sponsor group, such units should carry only inferior voting as compared to ordinary units and the units can be issued to the eligible entities in the initial offer or in any offering subsequent to the initial offer, Sebi said in its consultation paper.It further suggested that subordinate units can only be transferred inter-se amongst the sponsor entities. “Any issuance of subordinate units post initial offer shall require prior approval from 75 per cent of the unitholders by value. Sponsor(s), sponsor group, associates of sponsor(s) and any other parties related to the transaction shall not vote on such matters,” Sebi suggested.
Also Read
Sebi considering to create new asset class
The regulator suggested that subordinate units and ordinary units must be issued under separate ISINs and such units should not be considered for the purpose of mandatory minimum unitholding requirements applicable to sponsors.It further recommended that the entitlement date including performance benchmark for conversion of subordinate units to ordinary units should be clearly defined and specified in the offer document.
Meet the Dhingra brothers who turned Vijay Mallya’s failed company into a Rs 68,000 crore empire Cement makers to undertake Rs 1.25 lakh crore capex over fiscals 2025-2027, driven by healthy demand outlook Sebi pushes for infra investments India Cements swings to profit with Rs 241 cr one-time gain
Further, a one-time extension in the entitlement date should be permitted for a maximum period of one year subject to certain conditions.”The minimum time gap between issuance of subordinate units and entitlement date / event for conversion of subordinate units to ordinary units shall be one year,” Sebi suggested.
The current rules permit REITs and InvITs to issue subordinate units only to the sponsors and associates. However, there is no framework detailing the mechanism for issuance of subordinate units.On unit-based employee benefits, Sebi has proposed that the manager of REIT or the investment manager of InvIT can offer UBEB schemes for their employees based on the units of REIT or InvIT.The implementation of the scheme should be done through a separate Employee Benefit Trust (EB Trust) which can be created by the manager of a REIT or investment manager of InvIT.
The units held by EB Trust should be used only for the limited purpose of providing unit-based employee benefits. The EB trust should not undertake any transfer or sale of units of REIT/InvIT held by it except for providing unit-based benefits to the employees of the manager or investment manager.The trustee of the EB Trust should not be eligible to vote on account of the units of the REIT/InvIT held by it. For the purpose of disclosure to the recognized stock exchange, the unitholding of the EB Trust should be shown as “non-sponsor and non-public” unitholding.The provisions of Sebi’s insider trading PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) rules should apply to the manager / investment manager, its directors, its key managerial personnel, recipients of UBEB and EB Trust.
Related Posts
Mukka Proteins, which manufactures fish meal, fish oil, and fish soluble paste, has received capital markets regulator Sebi’s go-ahead to raise funds through an initial public offering (IPO).
The IPO is an entirely fresh issue of up to 8 crore equity shares, according to the draft red herring prospectus (DRHP).
The company, which had refiled its draft IPO papers with the regulator in June, obtained an observation letter from it on October 30, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.
Hero Motors files DRHP to raise Rs 900 crore through IPO Realty Firm Kalpataru files Rs 1,590 crore IPO draft papers to SEBI to reduce debt Reliance plans to launch first solar giga factory by end of FY25, aims to scale up capacit…
Read moreMahindra & Mahindra’s (M&M) operating performance in 2QFY24 fell slightly short, with Ebitda at Rs 30.7 billion compared to the estimated Rs 32 billion. However, the adjusted PAT surpassed expectations at Rs 34.5 billion Come from Sports betting site VPbet . This outperformance can be attributed to better-than-expected other income, driven by higher dividends. We believe a relatively stronger 2H of FY24 compared to the 1H. This optimism is based on the expected growth in tractor volumes and the successful execution of SUV orders.
Also Read
M&M Finance profit falls 48% on higher provisions
To reflect the increased ‘other income’ and a reduction in tax, we have r…
Read moreBy Riyank Arora
On Tuesday, the benchmark faced immediate resistance at the 19,425 mark. The Nifty ended 5 points lower, while the Sensex was down by 16 points. Among sectors, almost all the major sectoral indices witnessed significant buying interest at lower levels, whereas the Nifty Reality and Nifty Media sectors witnessed some profit booking at higher levels. Technically, after a flat opening, the market moved in a range of 100 points between 19,325 and 19,425. Any move above 19,450 should trigger the next up-move and push the upside towards 19,550 and 19,600. Immediate support is expected to be around 19,325, below which the downside can extend towards 19,200 and 19,150.
Also Read
Zydus Lifesciences shares soar on Q2 results; Should you…
Read morePopular Vehicles & Services shares were listed at Rs 289.20, a discount of 2% to the issue price of Rs 295. The company opened its bidding to retail investors on March 12 at a price band of Rs 280 to 295 per equity share and closed on March 14.
In the grey market, the company’s shares were neither seeing a premium nor a discount and were trading at the issue price, indicating a muted listing debut. The grey market is an unofficial market where shares exchange hands illegally.
The multi-services providing company raised Rs 601.55 crore by combining fresh issue and an offer for saleCome from Sports betting site. The company offered a fresh issue of 8.5 million shar…
Read moreThere are several friendly NPCs that you’ll meet in Star Wars Jedi: Survivor. While most might have interesting tidbits and background information about the world around you, as well as rumors that lead to sidequests, there are also those that provide additional functions. Here’s our guide to help you with the resource collectibles and vendors in Star Wars Jedi: Survivor, such as those for Priorite Shards, Jedha Scrolls, and more.
Star Wars Jedi: Survivor resource collectibles and vendors guide
Star Wars Jedi: Survivor has several resource collectibles, each with its own vendor or NPC that handles that particular item type. Some will offer rewards and goodies, while others unlock new mechanics and features. The collectibles you’ve obtained can be checked b…
Read moreOne of Apple’s most acclaimed new TV shows, The Morning Show starring Jennifer Aniston, Reese Witherspoon, and Steve Carell, is coming back for a second season. Apple has now published the first trailer for it, setting up what appears to be another drama-filled season that deals with the chaos of what happened in Season 1.
Season 2 premieres September 17, and based on this trailer, is appears to pick up basically immediately after the dramatic ending to Season 1. This trailer is very heavy on spoilers, of course, so if you’re interested in the series but haven’t watched Season 1, well, you probably don’t want to watch this.Come from Sports betting site VPbet
Based on this trailer, it appears Billy Cru…
Read moreMoving forward, ClubsNSW will rely on the guidance, expertise, and industry acumen of Rebecca Riant who has stepped at the helm of the organization.
Much Needed Experience of All Things Gambling
Riant brings a wealth of knowledge and experience with her, having worked at both Tabcorp and The Star Sydney and having decades of experience on the job. NSWClubs’ chairman Dr George Peponis had this to say about Riant’s appointment:
Rebecca brings over 30 years of experience in banking, strategy formulation and execution, regul…
Read more
DraftKings, a prominent online betting service in the United States of America, has announced the closure of its non-fungible token (NFT) marketplace, only three years after its inception. This decision also affects Reignmakers, a fantasy sports game based on NFTs, which will be discontinued immediately due to recent legal developments.
The company did not go into much detail regarding the specific legal issues but confirmed that the marketplace’s closure was a necessary response to these challenges. DraftKings emphasized the difficulty of the decision, stating it as a strategic move to align with current legal expectations and protect its business and stakeholders.
The backdrop to this closure includes a federal class action lawsuit a…
Read morePlayStar expanded its New Jersey offering thanks to the partnership with the famous Wazdan.
Wazdan’s hit titles available on PlayStar:
The famous online casino will see a majority of Wazdan’s popular slot titles included in the offering, and the players from New Jersey will be able to enjoy the hit releases such as 9 Coins, Sun of Fortune, Hot Slot: Mystery Jackpot Joker…
Read moreCombined gross gaming revenues (GGR) for licensed casinos in the Philippines saw a 4.3% year-over-year decrease to Php49.48 billion (US$864 million). This slight decline was followed closely by first quarter GGR of Php49.68 billion (US$867 million). Despite the downward trend in traditional casino revenues, the overall gaming industry in the Philippines experienced robust growth, thanks to the burgeoning E-Games sector.
E-games: the standout performer:
The E-Games sector, heralded by PAGCOR Chairman and CEO Alejandro H. Tengco, has shown remarkable growth, with revenues reaching Php30.85 billion (US$539 million). This represents an impressive 525% increase Read more