ADVOKS GLOBAL · KENYA
The Capital Markets (Real Estate Investment Trusts) (Collective Investment Schemes) Regulations
24. Restriction on the issue or offer of REIT securities
Edition: 2023-10-06 · In force
24. Restriction on the issue or offer of REIT securities
(1)For the purposes of these Regulations, a person who invites another person—(a)to enter into an agreement for or with the view to subscribing for or otherwise acquiring or underwriting the issue or offer of any REIT securities; or(b)to make an offer under subparagraph (a),shall be considered to be issuing or offering REIT securities.(2)A person shall not—(a)make an offer of or issue REIT securities or other securities in respect of a real estate investment trust or a real estate investment trust scheme—(i)otherwise than in accordance with the Act, these Regulations and with a prospectus or an offering memorandum that contains the information set out in the Fourth Schedule and has been approved by the Authority; and(ii)in respect of a real estate investment trust scheme which has been authorized by the Authority either as a D-REIT or an I-REIT;(b)act as an agent in the sale, issue or offer of REIT securities unless that person is licensed by the Authority and complies with these Regulations; or(c)act as a promoter of a real estate investment trust scheme or a real estate investment trust except in accordance with the Act and these Regulations.(3)The provisions of paragraph (2) shall not apply to—(a)an offer of REIT securities to a promoter of a scheme or to connected persons;(b)an agreement entered into by a promoter or connected person to acquire REIT securities in exchange for or part exchange of the transfer of real estate into a proposed scheme; or(c)an offer or issue of REIT securities to the promoter or connected person which are subject to the restriction that the securities cannot be subsequently transferred by the promoter except as a consequence of the winding up or death of the promoter, or where made pursuant to regulation 27(4) or regulation 29(5).