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CS Professional · Strategic Management and Corporate Finance · Real Estate Investment Trusts

A REIT is constituted as a trust. Which statement correctly describes the legal form needed for a REIT to be eligible for registration with SEBI?

A REIT must be a trust formed under the Indian Trusts Act, 1882, with its trust deed registered under the Registration Act, 1908. Companies, LLPs and unregistered associations are not eligible structures for registration as a REIT with SEBI.

  1. AIt must be a company incorporated under the Companies Act, 2013
  2. BIt must be a trust registered under the Indian Trusts Act, 1882 with the trust deed registered under the Registration Act, 1908Correct
  3. CIt must be a limited liability partnership with at least two partners
  4. DIt may be any association of persons, registered or unregistered

Explanation

A REIT must be a trust set up under the Indian Trusts Act, 1882 and the trust deed must be registered under the Registration Act, 1908. A company or LLP is not an eligible form. An unregistered association does not meet the eligibility conditions.

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