1. Indian Reits will be allowed to own only commercial property and there are other restrictions. To be eligible for listing, the value of the assets owned or proposed to be owned by a Reit should be worth at least Rs 500 crore. Assets must be valued and net asset value updated at least twice in every financial year.
2. Reits must distribute at least 90 per cent of their net distributable cash flows to their investors every six months. Also, at least 80 per cent of assets must be in properties that are generating revenue.
3. A Reit can invest only 10 per cent in properties under construction. This means Reits can also invest a small portion (about 20 per cent or less) in mortgage-backed securities and cash-equivalent assets like money market funds.