The Real Estate Investment Trust (REIT) is an investment vehicle that invests in rent yielding completed real estate properties which has the potential to transform the Indian real estate sector. What are the eligibility

Eligibility Criteria to Sponsor a REIT Each sponsor shall hold or propose to hold not less than 5% of the number of units of the REIT on post-initial offer basis. Further, each sponsor and sponsor group shall be clearly identified in the application of registration to SEBI and in the offer document/placement memorandum, as applicable. For each sponsor group not less than one person shall be identified as a sponsor. Out of the entities categorized as sponsor group, only the following entities may be considered: a person or entity who is directly or indirectly holding an interest or shareholding in any of the assets or SPVs or holding companies proposed to be transferred to the REIT. a person or entity who is directly or indirectly holding units of the REIT on post-issue basis. a person or entity whose experience is being utilized by the sponsor for meeting the eligibility conditions required under REIT regulations. The sponsor(s), on a collective basis, have a net worth of not less than ₹ 100 crore. However, each sponsor to have a net worth of not less than ₹ 20 crore. The sponsor or its associate(s) has not less than five years' experience in development of real estate or fund management in the real estate industry; However, where the sponsor is a developer, at least two projects of the sponsor must have been completed.