SECURITIES FRAUD IN REAL ESTATE INVESTMENT TRUST (REIT): ANALYSING SEBI’S ROLE IN PROTECTING INVESTOR INTEREST

AUTHOR – SHARITHIRA N K* & T. VAISHALI**, LLM SCHOLAR* & ASSISTANT PROFESSOR OF LAW** THE TAMIL NADU AMBEDKAR LAW UNIVERSITY, CHENNAI, TAMIL NADU, INDIA.

BEST CITATION – SHARITHIRA N K & T. VAISHALI, SECURITIES FRAUD IN REAL ESTATE INVESTMENT TRUST (REIT): ANALYSING SEBI’S ROLE IN PROTECTING INVESTOR INTEREST, ILE MULTIDISCIPLINARY JOURNAL, 3 (1) OF 2024, PG. 309-318, APIS – 3920-0007 | ISSN – 2583-7230.

ABSTRACT

The Real Estate Investment Trust (REIT) provides opportunities to the investors to expand the investment portfolio and helps to raise capital which leads to development of real estate sector. The Securities Fraud affects the Securities Market and contributes to the slowdown of the economy. Securities Fraud in REIT affects the real estate sectors and leads to depreciation of value of assets, under utilisation of properties, financial losses to investors and brings down socio economic development. The Securities and Exchange Board of India (SEBI) protects the REIT investors through the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014, other regulations framed by the SEBI and programmes launched by SEBI. The SEBI (REIT) Regulations regulate the REIT investments and safeguards the interest of the investors through registration of REIT, appointment of trustee, manager and valuer, disclosure of information along with the mandatory compliance with investment strategy, policy and conditions. The SEBI (REIT) Regulations take necessary action if there is any violation of regulation with respect to investor’s protection. This paper analyses the investments made through REIT and the fraudulent activities directed on REIT investors along with the safeguard measures laid down by the SEBI through SEBI (REIT) Regulations, 2014 and other regulations.

KEYWORDS  – Real Estate Investment Trust, REIT, Securities Fraud, Investor, Protection, SEBI