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Real Estate Investment Trusts (REITs)


Posted on 09-Apr-2019 Comments  0

Dear Customer, 

Greetings from Tradeplus!!!

We wish to notify that REITs, or Real Estate Investment Trusts, are companies that own or finance income-producing real estate in a range of property sectors. These companies have to meet a number of requirements to qualify as REITs. Most REITs trade on major stock exchanges, and they offer a number of benefits to investors.

REITs allow anyone to invest in portfolios of real estate assets the same way they invest in other industries – through the purchase of individual company stock or through a mutual fund or exchange traded fund (ETF). The stockholders of a REIT earn a share of the income produced through real estate investment – without actually having to go out and buy, manage or finance property. 

 Clearing and Settlement for Real Estate Investment Trusts (REITs)

Kindly take note that the clearing & settlement provisions applicable in the Capital Market segment shall apply mutatis mutandis to the clearing & settlement of REITs securities.

However, you are requested to note the following for clearing & settlement of REITs securities:

Ø  Margining framework for REITs shall be as applicable as like in the other securities in CM Segment.

Ø   Trades executed in RR series shall be cleared and settled on a net obligations basis within series. All trades shall be settled under settlement type N.

Ø   Trades executed in RT series shall be cleared and settled on a trade for trade basis and there shall be no netting of transactions. All trades shall be settled under settlement type W.

Ø   Trades executed in REITs shall be settled on a T+2 rolling basis.

Ø  Settlement guarantee shall be provided for trades and settlement shall be compulsorily done in dematerialized mode.

Ø  The delivery for securities pay-in shall be done in applicable market lot only.  

Ø   Shortages resulting out of failure of the seller to deliver securities shall result in auction and shall be cleared and settled on a trade for trade basis under settlement type “A”. Close out shall be as per existing of provision of CM Segment.

             To know more about REIT, please click here:

You are requested to take note of the above and for any clarification, Please write to us at support@tradeplusonline.com or reach us on our customer support desk 044-49427576, 044- 28214171.

With Best Regards

Trade Plus Team 



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