SEBI Modifies Guidelines on Preferential Issue & Institutional Placement of Units by a Listed REIT/InvIT
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- Last Updated on 7 July, 2023
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Circular Nos. SEBI/HO/DDHS-PoD-2/P/CIR/2023/113 & 114, Dated: 05.07.2023
Earlier, SEBI vide Circular No. SEBI/HO/DDHS/DDHS/CIR/P/2019/142 & 143, dated 27.11.2019, issued guidelines for preferential issues and institutional placement of units by listed REITs/InvITs.
Now, SEBI has modified these guidelines. As per the modification, the institutional placement must be conducted at a price that is not lower than the average of the weekly high and low closing prices of units of the same class quoted on the stock exchange during the two weeks prior to the relevant date.
The “relevant date” pertaining to institutional placement refers to the date of the meeting in which the board of directors of the manager decides to open the issue.
Further, REITs/InvITs may offer a discount of up to 5% of the calculated price, subject to the approval of unitholders. The circular shall be effective immediately.
Click Here To Read The Full Circular
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