Section 11 in Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014
11. Rights and responsibilities of sponsor(s) [and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).].
(1)The sponsor(s) [and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] shall set up the REIT and appoint the trustee of the REIT.(2)The sponsor(s) [and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] shall transfer or undertake to transfer, subject to a binding agreement and adequate disclosures in the initial offer document, [their] [Substituted 'its' by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] entire shareholding or interest [and rights] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).] in the [holdco and/or] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] SPV or entire ownership of the real estate assets to the REIT prior to allotment of units of the REIT to the applicants:Provided that this shall not apply to the extent of any mandatory holding of shares or interest [and rights] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).] in the [holdco and/or] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] SPV by the sponsor(s) [and sponsor group(s)] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).] as required [under] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).] any Act or regulations or circulars or guidelines of government or regulatory authority as specified from time to time.(3)With respect to holding of units in the REIT, [***] [Omitted 'the sponsor(s) shall,-' by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).](a)hold a [the sponsor(s) and sponsor group(s) shall collectively] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] minimum of twenty five percent of the total units of the REIT after initial offer on a post-issue basis:Provided that the minimum sponsor [(s) and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] holding specified in this clause shall be held for a period of atleast three years from the date of listing of such units:Provided further that any holding of the sponsor [(s) and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] exceeding the minimum holding as specified in this clause, shall be held for a period of atleast one year from the date of listing of such units;(b)[the sponsor(s) and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] together hold not less than fifteen per cent of the outstanding units of the listed REIT at all times;(c)[each of the sponsor] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] individually [shall] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] hold not less than five per cent of the outstanding units of the listed REIT at all times.(4)If the sponsor(s) [and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] propose(s) to sell its units below the limit specified in clauses (b) or (c) of sub-regulation (3) of this regulation-(a)such units shall be sold only after a period of three years from the date of listing of the units;(b)prior to sale of such units, the sponsor(s) [and sponsor group(s)] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] shall arrange for another person(s) or entity(ies) to act as the re-designated sponsor(s) where the re-designated sponsor shall satisfy the eligibility norms for the sponsor as specified under [regulation 4] [Substituted 'regulation 3' by Notification No. SEBI/LAD-NRO/GN/2017-18/022, dated 15.12.2017 (w.e.f. 26.9.2014).]:Provided that such units may also be sold to an existing sponsor;(c)The [***] [Omitted 'sponsor/' by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] proposed re-designated sponsor shall obtain approval from the unit holders or provide option to exit to the unit holders in accordance with guidelines as may be specified:Provided that this clause shall not apply where the units are proposed to be sold to an existing sponsor [or member of sponsor group] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).].(5)If re-designated sponsor(s) propose(s) to sell it sunits to any another person, conditions specified under clauses (b), and (c) of sub-regulation (4) shall be complied with.
