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PR – 166/2006 SEBI Board approves (1) guidelines for Real Estate
Mutual Funds and (2)Changes in Venture Capital Fund lock- in period for IPOs The SEBI Board at its meeting held
today in Mumbai approved the guidelines for Real Estate Mutual Funds (REMFs).
Real Estate Mutual Fund Scheme means a scheme of a mutual fund which has
investment objective to invest directly or indirectly in real estate property
and shall be governed by the provisions and guidelines under SEBI (Mutual
Funds) regulations. The structure of the
REMFs, initially, shall be close ended. The units of REMFs shall be
compulsorily listed on the stock exchanges and NAV of the scheme shall be
declared daily. The
REMFs shall appoint custodian who has been granted a
certificate of registration to carry on the business of custodian of securities
by the Board. The custodian shall safe keep the title of real estate properties
held by the REMFs. These schemes can
invest 1) directly in real estate properties within The
Board also decided that the shareholding of Venture Capital Funds (VCFs) and Foreign Venture Capital Investors (FCVIs) held in
a company prior to making an Initial Public Offering (IPO), would be exempt
from lock-in requirements only if the shares are held by them for a period of
at least one year at the time of filing of draft prospectus with SEBI. This
would help to ensure that only those VCFs and FCVIs who participate in the company with a long term
perspective, are allowed to get the benefit of the exemption from requirement
of lock-in as intended by the SEBI (Disclosure and Investor Protection)
Guidelines. Necessary
amendments to the respective regulation / guidelines are being issued. Mumbai |
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