Regulation 17D - Secondary acquisition - Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014

1 [Secondary acquisition. 17D. (1) The employee benefit trust shall not be used as a mode for trading in units of the REIT. (2) Secondary acquisition in a financial year by the employee benefit trust shall not exceed two per cent of the total outstanding units of the REIT as at the end of the previous financial year. Explanation. - secondary acquisition means acquisition of existing units of the REIT by the employee benefit trust on the platform of a recognised stock exchange for cash consideration for the purpose of unit based employee benefit scheme. (3) The total number of units under secondary acquisition held by the employee benefit trust shall at no point of time exceed five per cent of the total outstanding units of the REIT as at the end of the financial year immediately prior to the year in which the unitholders approval is obtained for such secondary acquisition: Provided that the above ceiling limit shall exclude the units that are allotted to the employee benefit trust by way of a new issue or gift. (4) The manager shall obtain approval of unitholders for secondary acquisition as per sub-regulation (6) of regulation 22 of these regulations. (5) The employee benefit trust shall be required to hold the units acquired through secondary acquisition for a minimum period of six months. (6) The employee benefit trust shall disclose the period during which it plans to undertake secondary acquisition, in advance of at least seven working days (excluding the date of intimation and the date of start of such period), to the recognised stock exchanges and the depositories. (7) The employees of the manager shall not sell units of the REIT held by them during the period referred in sub-regulation (6). (8) The manager shall submit a list of its employees to the depositories along with relevant details of the employees including their Income Tax Permanent Account Number, in advance of at least seven working days (excluding the date of intimation and the date of start of the period during which the employee benefit trust plans to undertake secondary acquisition). (9) The depositories shall impose lock-in on the holdings of units of REIT by such employees and the lock-in shall be released after the period during which the employee benefit trust plans to undertake secondary acquisition, as disclosed to the recognised stock exchanges and depositories has elapsed. ] *************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/193 dated 09-07-2024