Regulation 26S - Disclosure in scheme offer document - Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014

1 [ Disclosure in scheme offer document. 26S. (1) The scheme offer document shall make all disclosures as specified in Schedule III and any other disclosures as specified by the Board from time to time. (2) The scheme offer document of the SM REIT shall contain material, true, correct and adequate disclosures to enable the investors to make an informed decision. (3) The disclosures in the scheme offer document shall not be misleading and not contain any untrue statements or mis-statements. (4) The scheme offer document shall not provide for any guaranteed returns to the investors. (5) The scheme offer document shall disclose lease rental income for each property proposed to be acquired by the scheme of the SM REIT along with comparable lease rental income of other similar properties. (6) The comparable disclosures specified in sub-regulation (5) of this regulation shall be sourced from or certified by a valuer or any other persons as may be specified by the Board from time to time. (7) The scheme offer document shall state whether the scheme of SM REIT is with leverage or without leverage in accordance with sub-regulation (2) of regulation 26U. (8) In case of a scheme of SM REIT with no leverage, the investment manager shall, at the time of filing of the scheme offer document, submit an undertaking that the particular scheme shall not utilize any leverage in future. (9) The scheme offer document shall disclose the total expense ratio for scheme of SM REIT in such form and manner and subject to such limits as may be specified by Board from time to time. ] ************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/166 dated 08-03-2024