Regulatory Alerts2019-01-01
Securities Industry (REITS) Guidelines 2019
The Securities and Exchange Commission issued these Guidelines to regulate the licensing, establishment, and operation of Real Estate Investment Trusts (REITs) within the securities industry. They mandate that REITs must be public companies primarily investing in income-generating real estate, derive at least 75% of revenue from property-related sources, hold 75% of assets in real estate, distribute 80% of distributable profits, and list on an exchange within three years. The guidelines also detail eligibility, licensing, functions, and obligations for REIT managers, custodians, and property valuers, alongside requirements for public offers, audit, and periodic reporting to ensure investor protection.
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