Markets regulator Sebi is considering setting up of 'Chair' at National Institute of Securities Markets (NISM) and other institutions, which will help in increasing awareness among investors.
'Sebi Chair' would provide research based policy inputs and help in increasing academic interest and awareness about the activities of the regulator.
The Chair would undertake activities of publishing research papers, policy notes, concept notes as well as deliver lectures and seminars.
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The regulator plans to create a maximum of five chairs at NISM and a sum of Rs 20 crore would be provided for setting-up of Sebi Chairs.
Professionals having relevant experience in securities markets, those who have held senior regulatory positions and academicians will occupy the Sebi Chair.
"The regulator plans to establish few Sebi Chairs at NISM and based on this assessment, more Chairs would be established in the other institutions and universities on similar lines," an official said.
The issue is likely to be discussed at the board meeting of Securities and Exchange Board of India (Sebi) this week, he added.
NISM was set up by the Sebi in 2005 with an objective to educate and train various stakeholders as also to promote research initiatives in the capital market space.
Many institutions including RBI has Chairs in premier institutions across the country, which assists parents institute with research works and policy inputs.
Also, if some part of an under-construction property has
got Occupancy Certificate, that portion would be considered 'completed property' and the remainder would be 'under-construction' property.
Among the proposed changes, Sebi plans to remove the restriction on an SPV to invest in other SPVs holding assets, which in turn would allow REITs to invest in a holding company owning stake in SPVs.
It is being proposed that the REIT would hold controlling interest and at least 50 per cent equity in the holding company, which in turn can hold controlling interest and at least 50 per cent equity in an underlying SPV.
A large proportion of real estate projects in India is financed by financial institutions on a project-finance basis where lenders require a pledge on shares of the SPV.
Currently, an SPV is required to hold at least 80 per cent of its assets directly and cannot invest in other SPVs.
Another move is to allow the REITs to have up to five sponsors as against the current norm for a maximum three.
Besides, a sponsor can have REIT holdings with its group companies or associates, all of whom would be counted as one.
It was felt that the current norms were restrictive in the case of a sponsor group holding interest through group firms or individuals.
Sebi also proposed rationalising the requirements under the related party transactions, under which approval of 60 per cent unitholders apart from related parties is required for passing a transaction.
Now, it has been proposed that the number of votes cast by the unitholders in favour of the proposal shall be more than the number of votes against it.
At present, approval of 75 per cent unitholders is required, apart from related parties, for passing special resolutions such as change in investment manager, investment strategy and delisting of units.
Now, "it is proposed that the number of votes cast by the unitholders in favour of the proposal shall be at least one and half times more than the number of votes cast by the unitholders against it".
"Further in both the above cases, the voting by any person, who is a related party in such transactions, as well as associates of such person(s) shall not be taken into account," the proposal noted.
Regarding the pricing of related party transactions for purchase/sale of real estate assets, Sebi has proposed that the property shall not be purchased at a value greater than 110 per cent of the average of the two independent valuations.
"In case of a sale transaction, the property shall not be sold at a value less than 90 per cent of the average of the two independent valuations," it added.
