Regulation 20 - Borrowings and deferred payments - Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014

Borrowings and deferred payments. 20. 1 [(1) A REIT, whose units are listed on a recognized stock exchange, may issue debt securities in the manner specified by the Board: Provided that such debt securities shall be listed on recognized stock exchange(s).] 2 [(2)] The aggregate consolidated borrowings and deferred payments of the REIT 3 [, holdco and/or the SPV(s),] net of cash and cash equivalents shall never exceed forty nine per cent. of the value of the REIT assets: Provided that such borrowings and deferred payments shall not include any refundable security deposits to tenants. 7 [ Explanation 1. Investment by REITs in overnight mutual funds, characterized by their investments in overnight securities, having maturity of one day, shall be considered as cash and cash equivalent. Explanation 2. The amount of cash and cash equivalent shall be excluded from the value of the assets of the REIT. ] 4 [(3)] If the aggregate consolidated borrowings and deferred payments of the REIT 5 [, holdco and/or the SPV(s),] net of cash and cash equivalents exceed twenty five per cent. of the value of the REIT assets, for any further borrowing,- (a) credit rating shall be obtained from a credit rating agency registered with the Board; and (b) approval of unit holders shall be obtained in the manner as specified in regulation 22. 6 [(4)] If the conditions specified in sub-regulations (1) and (2) are breached on account of market movements of the price of the underlying assets or securities, the manager shall inform the same to the trustee and ensure that the conditions as specified in this regulation are satisfied within six months of such breach. *************** NOTES:- 1 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 2 Re-numbered by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 3 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 4 Re-numbered by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 5 Inserted by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2016, w.e.f. 30.11.2016 6 Re-numbered by the SEBI (Real Estate Investment Trusts) (Amendment) Regulations, 2017, w.e.f. 15.12.2017 7. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/123 dated 14-02-2023