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

Under the SEBI (Real Estate Investment Trusts) Regulations, 2014, which of the following is the correct position regarding listing of units of a REIT issued through a public offer?

Units issued through a public offer by a REIT must be listed on a recognised stock exchange within the prescribed period after closure of the offer. Unlisted status, overseas-only listing or waiting for a first distribution are not permitted under the REIT Regulations.

  1. AUnits must be listed on a recognised stock exchange within the prescribed time after the offer closesCorrect
  2. BUnits may remain unlisted indefinitely if the manager so decides
  3. CUnits can be listed only on an overseas exchange
  4. DUnits are listed only after the first annual distribution is made

Explanation

Units of a REIT raised through an initial public offer are required to be listed on a recognised stock exchange within the time prescribed by the Regulations. Leaving them unlisted is not permitted for public offers, and listing is not tied to distributions or overseas exchanges.

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