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

In the usual REIT structure under SEBI regulations, which party is responsible for holding the REIT's assets for the benefit of unit holders and supervising the manager's activities?

The trustee holds the REIT's assets for unit holders and supervises the manager's compliance with the trust deed and regulations. The sponsor only sets up the trust, the manager runs investments, and the valuer merely values assets, so the trustee is the right answer.

  1. AThe Sponsor
  2. BThe TrusteeCorrect
  3. CThe Valuer
  4. DThe Registrar to the issue

Explanation

The trustee holds the REIT assets in trust for unit holders and oversees the manager's compliance with the regulations and trust deed. The sponsor sets up the REIT, the valuer values assets, and the registrar handles unit records.

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