The Securities and Exchange Board of India (SEBI) on 22nd April, 2019 amended the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 to bring in the following two amendments to allow allotment and trading in publicly issued REITs in multiples of Lots.
The first amendment has been made in existing Regulation 14 with respect to the issue and allotment of units. The changes are made in the minimum subscription that the REIT can accept from an investors in case of the initial and/or public offer, which has been revised to Rs 50,000 from Rs 2 Lakhs per applicant.
The second amendment has been made in regulation 16 on trading Lots. Trading lot for the purpose of trading of units of the REIT has now been revised from units worth one lakh rupees to 100 units irrespective of value. The amendment prescribes the trading lot for the purpose of trading of units to be comprising of 100 units instead of valuing one lakh rupees.
