ABC Realty, a real estate investment firm, is preparing to launch an initial offer of units under a newly established Real Estate Investment Trust (REIT) in India. To ensure regulatory compliance, the firm's legal team i

The eligible issuers for making an initial offer of units by SM REITs in accordance with Chapter VIB of the SEBI (Real Estate Investment Trusts) Regulations, 2024 are as under: the SM REIT or the parties to the SM REIT are debarred from accessing the securities market or dealing in securities by the SEBI; any of the promoters, promoter group or directors of the parties to the SM REIT are debarred from accessing the securities market or dealing in securities by the SEBI; any of the promoters or directors of the parties to the SM REIT is a promoter or director of another company which is debarred from accessing the securities market by the SEBI; (This is not applicable to a person who was appointed as a director only by virtue of nomination by a debenture trustee in other company.) the SM REIT or the parties to the SM REIT or any of the promoters or directors of the parties to the SM REIT are wilful defaulters; any of the promoters or whole-time directors of the parties to the SM REIT is a promoter or whole-time director of another company which is a wilful defaulter; any of the promoters or directors of the parties to the SM REIT is a fugitive economic offender; or any fine or penalties levied by the SEBI or stock exchanges is pending to be paid by the SM REIT at the time of filing the scheme offer document. However, the clauses (a), (b) and (c) shall not be applicable if the period of debarment is over as on the date of filing of the scheme offer document with the SEBI and the designated stock exchange. Further, no offer of units by a scheme of the SM REIT shall be made unless,- the size of the asset proposed to be acquired in a scheme of the SM REIT is at least rupees fifty crores and less than rupees five hundred crores; and the minimum number of unitholders of the scheme of the SM REIT other than the investment manager, its related parties and associates of the SM REIT are not less than two hundred investors: This shall not be applicable to the migration of existing persons, entities or structures as on the date of this chapter coming into force which are included as part of the migration plan in case the applicant is applying for a certificate of registration.