Section 20 in Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014
20. Borrowings and deferred payments.
- [(1) A REIT, whose units are listed on a recognized stock exchange, may issue debt securities in the manner specified by the Board:Provided that such debt securities shall be listed on recognized stock exchange(s).] [Substituted by Notification No. SEBI/LAD-NRO/GN/2017-18/022, dated 15.12.2017 (w.e.f. 26.9.2014).](2)If the aggregate consolidated borrowings and deferred payments of the REIT [holdco and/or the SPV(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] net of cash and cash equivalents exceed twenty five per cent of the value of the REIT assets, for any further borrowing,-(a)credit rating shall be obtained from a credit rating agency registered with the Board; and(b)approval of unit holders shall be obtained in the manner as specified in regulation 22.(3)If the conditions specified in sub-regulations (1) and (2) are breached on account of market movements of the price of the underlying assets or securities, the manager shall inform the same to the trustee and ensure that the conditions as specified in this regulation are satisfied within six months of such breach.
