Who is the sponsor of a Real Estate Investment Trust? What are the provisions with respect to the holding of units by the sponsor in the REIT? Describe.

Answer 4(b) Sponsor means any person who sets up the Real Estate Investment Trust (REIT). The sponsor appoints the trustee of the REIT in accordance with the SEBI ((Real Estate Investment Trust) Regulations, 2014. There should not be more than three sponsors each holding at least five percent of the number of units of the REIT on post -initial offer basis; The sponsor(s), on a collective basis, should have a net worth of not less than one hundred crore rupees and each Sponsor has a net worth of not less than twenty crore rupees; and The sponsor or its associate(s) should have not less than five years' experience in development of real estate or fund management in the real estate industry; Where the sponsor is a developer, at least two projects of the sponsor have been completed. With respect to holding of units in the REIT, the sponsor(s) shall- Hold the minimum 25% of the total units of the REIT after initial offer on a post-issue basis and this holding shall be held for a period of three years from the date of listing of such units; Any holding of the sponsor exceeding the minimum holding shall be held for a period of at least one year from the date of listing of such units; Together hold not less than fifteen percent of the outstanding units of the REIT at all times; Individually, hold not less than five percent of the outstanding units of the listed REIT at all times.