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

In the typical Indian REIT structure, which party is registered with SEBI as the trustee holding the REIT assets for the benefit of unitholders?

The trustee, who must be registered with SEBI, holds the REIT's assets in trust for unitholders and oversees the manager. The sponsor only sets up the REIT and the manager runs it, while the exchange and valuer perform listing and valuation roles, not trusteeship.

  1. AA sponsor who sets up the REIT and holds the properties directly in its own name
  2. BA trustee registered with SEBI that holds the REIT assets in trust for unitholdersCorrect
  3. CThe stock exchange on which the units are listed
  4. DThe property valuer appointed for the REIT

Explanation

A REIT has a SEBI-registered trustee who holds the assets in trust for unitholders and oversees the manager. The sponsor sets up the REIT and the manager runs it. The exchange and valuer are not trustees.

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