"No person shall act as a Real Estate Investment Trust (REIT), unless it is registered with SEBI under the REIT Regulations". Structure a REIT with due consideration to Eligibility and basic conditions to be fulfilled un

Eligibility: In a REIT structure, the following parties are involved: REIT Applicant (viz. Trust which holds the underlying properties), Sponsor (like a promoter in case of a listed company), Trustee of the REIT; and Manager (viz. a company or an LLP which manages assets and investments of the REIT and undertakes operational activities of the REIT) Conditions to be fulfilled under SEBI (REIT) Regulations, 2014 i. REIT Applicant The applicant must be a sponsor on behalf of trust and Trust Deed shall be duly registered in India under the provisions of the Registration Act, 1908 containing its main objective as undertaking activity of REIT in accordance with the REIT Regulations and includes responsibilities of the Trustee in accordance with of the provisions of REIT Regulations. Persons have been designated as sponsor(s), manager and trustee and all such persons are separate entities. ii. Sponsor 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. 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 holdcos 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 with the eligibility conditions required under REIT regulations. Sponsor(s), on a collective basis, have a net worth of not less than ₹100 crores, with each Sponsor having net worth of at least ₹20 crores. Sponsor or its associate(s) has not less than 5 years' experience in development of real estate or fund management in the real estate industry and where the sponsor is a developer, at least 2 projects of the sponsor have been completed. iii. Trustee It should be registered with SEBI under SEBI (Debenture Trustees) Regulations, 1993 and is not an associate of the sponsor(s) or manager. It has such wherewithal with respect to infrastructure, personnel, etc. to the satisfaction of the Board and in accordance with circulars or guidelines as may be specified by the SEBI. iv. Manager In case, Manager is a body corporate or a company, the net worth of the manager shall not be less than ₹10 crores or in case, the manager is a LLP, the value of net tangible assets shall not be less than ₹10 crores. Manager or its associate has not less than 5 years' experience in fund management or advisory services or property management in the real estate industry or in development of real estate and have at least 2 key personnel who each have 5 years' experience in Real Estate Activities; It has not less than half of its directors in the case of a company or of members of the governing Board in case of an LLP, as independent and not directors or members of the governing Board of another REIT. The manager must have entered into an investment management agreement with the trustee which provides for the responsibilities of the manager in accordance with REIT Regulations.