Securities And Exchange Board Of India - Subsection
Section 18(5) in Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014
(5)Not more than twenty per cent. of value of the REIT assets shall be invested [***] [Omitted 'proportionate to the holding of the REITs' by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).] in assets other than as provided in sub-regulation (4) and such other investment shall only be in,-(a)properties, [***] [Omitted 'in which not more than ten per cent. of value of the REIT assets shall be invested' by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).], [whether directly or through a company or LLP,] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).] which are:(i)under-construction properties which shall be held by the REIT for not less than three years after completion;(ii)under-construction properties which are a part of the existing income generating properties owned by the REIT which shall be held by the REIT for not less than three years after completion;(iii)completed and not rent generating properties which shall be held by the REIT for not less than three years from date of purchase;(b)listed or unlisted debt of companies or body corporate in real estate sector:Provided that this shall not include any investment made in debt of the [holdco and/or SPVs] [Inserted by Notification No. SEBI/L.A.D.-NRO/GN/2016-17/022, dated 29.11.2016 (w.e.f. 26.9.2014).];(c)mortgage backed securities;(d)equity shares of companies [which are] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).] listed on a recognized stock exchange in India which derive not less than seventy five per cent. of their operating income from real estate activity as per the audited accounts of the previous financial year;(da)[ unlisted equity shares of companies which derive not less than seventy five per cent. of their operating income from real estate activity as per the audited accounts of the previous financial year: [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).]Provided that the investments, made through unlisted equity shares of a company, in under construction properties and/or completed and not rent generating properties, shall be in compliance with clause (a) of this sub-regulation.] [Inserted by Notification No. SEBI/LAD-NRO/GN/2018/06, dated 10.4.2018 (w.e.f. 29.9.2014).](e)government securities;(f)unutilized FSI of a project where it has already made investment;(g)TDR acquired for the purpose of utilization with respect to a project where it has already made investment;(h)money market instruments or cash equivalents.
