SEBI circular on amendment to guidelines for preferential issue and institutional placement of units by a listed REIT– 26th August, 2022

SEBI vide its Circular dated 26 th August, 2022 amended guidelines for preferential issue and institutional placement of units by a listed REIT. These guidelines were issued by SEBI vide its circular dated 27 th November, 2019.

Sr. No. Part/Chapter/Section /Sub-section(s) Old guidelines (SEBI Circular 27 th November, 2019) New guidelines (SEBI Circular dated 26 th August, 2022) Comment 1. Modification in Clause 3.5 of SEBI Circular dated 27 th November, 2019 3.5 Post allotment, the InvIT shall make an application for listing of the units to the stock exchange(s) and the units shall be listed within seven working days from the date of allotment : Provided that where the InvIT fails to list the units within the specified time, the monies received shall be refunded through verifiable means within twenty days from the date of the allotment , and if any such money is not repaid within such time after the issuer becomes liable to repay it, the InvIT and the investment manager and its director or partner who is an officer in default shall, on and from the expiry of the twentieth day, be jointly and severally liable to repay that money with interest at the rate of fifteen percent per annum. “3.5. Post allotment, the InvIT shall make an application for listing of the units to the stock exchange(s) and the units shall be listed within two working days from the date of allotment : Provided that where the InvIT fails to list the units within the specified time, the monies received shall be refunded through verifiable means within four working days from the date of the allotment , and if any such money is not repaid within such time after the issuer becomes liable to repay it, the InvIT, investment manager of the InvIT and its director or partner who is an officer in default shall, on and from the expiry of the fourth working day, be jointly and severally liable to repay that money with interest at the rate of fifteen percent per annum”. Due to this amendment, number of days within which units shall be listed has been reduced from seven to two days. Further, for units which fails to list within specified time, the monies received shall be refunded within four days from the date of allotment which previously was twenty days. 2 . Modification in Sub-paragraph (A) of paragraph 2 of Annexure-I of SEBI Circular dated 27 th November, 2019 A. Pricing of frequently traded units 2.1. Where the units of the InvIT are frequently traded, the price of units to be allott