CS Professional · Strategic Management and Corporate Finance · Real Estate Investment Trusts
Under the SEBI REIT Regulations, which statement about the manager of a REIT is correct?
A REIT manager must satisfy minimum net worth and experience requirements in real estate or fund management, be a fit and proper person, and not be an associate of the trustee. It need not be a broker or the sponsor's parent.
- AThe manager need not have any minimum net worth
- BThe manager must have a minimum net worth and relevant experience in fund management or real estate, and must not be an associate of the trusteeCorrect
- CThe manager must always be the sponsor's parent company
- DThe manager must be a SEBI-registered stock broker
Explanation
The Regulations require the manager to meet net worth and experience criteria and to be a fit and proper person, and prohibit it from being an associate of the trustee. It need not be the sponsor's parent, and broker registration is irrelevant.
Did you get it right without looking?
One question tells you little. A timed set on Real Estate Investment Trusts shows your real accuracy, how long you take and where you lose marks.
More Real Estate Investment Trusts questions
- Which statement best describes the nature of the right of a REIT unitholder in the underlying real estate assets?
- A REIT in India holds its properties through special purpose vehicles (SPVs). Which statement best explains the rationale for this holding s…
- Under SEBI REIT Regulations, a REIT's units are listed and the investment is mainly held through special purpose vehicles (SPVs). Which stat…
- A REIT has 2,00,00,000 units outstanding. A resolution requiring approval by unitholders is put to vote and 1,20,00,000 units vote in favour…
- Which of the following is a correct feature of the unitholders' rights regarding related party transactions of a REIT?
- Under the SEBI (Real Estate Investment Trusts) Regulations, 2014, which of the following is the correct position regarding listing of units …