Skip to main content

Sebi puts out disclosure norms for REITs

By
Putting in place the disclosure norms for real estate investment trusts (REITs), Sebi on Monday said the offer document will contain financial information, related-party transactions and past performances.
The move came after Sebi, earlier this month, issued detailed norms for public issuance of REITs, including allocation of units to institutional investors. To facilitate the growth of REITs, Sebi last month notified revised and easier regulations for raising capital through this instrument. Sebi had notified the REIT regulations in 2014, allowing setting up and listing such trusts, which are very popular in some advanced markets. However, not a single trust has been set up in India as of now as investors await further measures, including tax breaks, to make these instruments more attractive.
In a circular issued on Monday, Sebi said the offer document would contain financial information of last three financial years. These include balance sheet, statements of profit and loss, income and expenditure, net assets and total returns.
Also, REITs will have to disclose about commitments, contingent liabilities, earnings per unit, total debt, net worth, and the debt/equity ratios before and after the completions of issue. The trust will have to make a statement about history of interest and principal payments of REIT and operating cash flow from the projects for the last three years and interim period, if any.
With regard to related party transactions, Sebi said REIT will have to provide relevant disclosures of all related party transactions like details of related party and its relationship with REIT, nature and value of transaction.
In case of any related party transaction involving acquisition or disposal of an REIT asset, the trust will have to inform about summary of valuation report, material conditions or obligations in relation to the transactions, and commissions received by any associate of the related party in relation to the transaction.
“The offer document/placement memorandum shall contain disclosures of the projections of revenues and operating cash flows of the REIT, property-wise, over the next three years, including related assumptions,” Sebi said.
REIT will have to prepare and disclose management discussion and analysis by the investment manager, based on the financial statements. A comparison needs to be provided for the most recent financial information with previous two years. A statement from investment manager regarding sufficiency of the working capital to fulfil the present requirements of REIT — at least 12 months from date of listing — will have to be disclosed in the offer document.
Business Standard New Delhi,27th December 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more