Manner / mechanism of providing exit option under SEBI REIT Regulations
CIRCULAR
SEBI/HO/DDHS/DDHS/CIR/P/2020/123
July 17, 2020
To,
All Real Estate Investment Trusts (“REITs”)
All Parties to REITs
All Recognised Stock Exchanges
All Merchant Bankers
Dear Sir/ Madam,
1. Regulation 22 (6A) and Regulation 22 (8) of SEBI (REIT) Regulations provide for exit option to be given to dissenting unit holders.
2. This circular details the guidelines in respect of conditions, manner and mechanism of exit option to be provided to dissenting unit holders. The detailed guidelines have been provided in Annexure-I.
3. An acquirer providing exit option to dissenting unitholders in terms of this circular shall appoint one or more merchant bankers, registered with the Board, as lead manager(s) for the exit option/offer,who shall ensure compliance with the provisions of SEBI (REIT) Regulations and this circular. Lead manager(s) shall send the Letter of Offer (LoF)to all dissenting unit holders and shall also file the same alongwith the due diligence certificate, in line with format specified inForm A inAnnexure-I of SEBI circular IMD/DF/136/2016 dated December 19, 2016, with the Exchange(s).The broad contents of LoFare indicated in Annexure-II of this circular.
4. Upon completion of exit option process,a due diligence certificate in line with format specified in the Form D in Annexure-I of SEBI circular no. IMD/DF/136/2016 dated December 19, 2016, shall be filed by the lead manager(s) with the Board within two working days of payment of consideration by the acquirer.
5. This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 33 of the SEBI (REIT) Regulations.6.This circular is available on the website of the Securities and Exchange Board of India at www.sebi.gov.in under the sub-category “Circulars” under the category “Legal”.
Yours faithfully,
Richa G. Agarwal
Deputy General Manager
Department of Debt and Hybrid Securities
Email id: richag@sebi.gov.in
Phone: +91-22-26449596
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