The regulator advised investors to take precautions while treating the unit.
Capital Market Regulator SEBI on Wednesday cautioned investors to make transactions with Stretta Small and Medium Real Estate Investment Trust (SM REIT). Explaining the reason for this, Sebi said that it is no longer a regulated mediated or SM REIT. According to PTI news, the decision came after reviewing some legal proceedings against the promoter of SEB -Penked SM REIT -Stretta SM REIT by the market regulator.
Certificate surrendered
According to the news, the regulator said that it had interacted with Stretta SM REIT, its independent director, compliance and other officers and trustees. The regulator said in a statement that on the basis of this conversation and discussion, Stretta SM REIT has surrendered its registration certificate as SM REIT and will not present or represent itself as a SEBI-control intermediaries or SM REIT. According to this, the regulator advised investors to take precautions while treating the unit.
It is necessary to be listed in stock exchanges
Stretta registered as SM REIT, a new asset class introduced as a sub-group under the REIT framework by the Securities and Exchange Board of India (SEBI), which is for assets worth Rs 50-500 crore. Similar to REIT, SM REIT units are required to be listed in stock exchanges, but the minimum lot size should be 1 unit of Rs 10 lakh. Under this framework, SM REIT is not allowed to invest in assets or land under construction and they have to distribute 95 percent of the income as distribution to the unit holders.
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