New Delhi, March 5 -- Nexus Select Mall Management Pvt Ltd, manager of the Blackstone-backed real estate investment trust (REIT) Nexus Select Trust, has settled allegations of violating REIT regulations with the capital markets regulator.

In a settlement order issued on Wednesday, the Securities and Exchange Board of India (SEBI) said that the REIT manager has paid Rs 24.37 lakh (around $26,587) to settle allegations that it failed to maintain required net worth and failed to inform the regulator about a material change in the net worth.

Upon payment of the settlement amount, the adjudication proceedings initiated against the manager have been disposed of, according to the SEBI order..

SEBI had issued a show-cause notice to the REIT's manager on June 11, 2025 under a rule that states the trust's manager should have a net worth of not less than Rs 10 crore (a little over $1 million) if the manager is a body corporate or a company, or net tangible assets of value not less than Rs 10 crore in case the manager is a limite liability partnership.

The notice also mentioned other sections including the one requiring the REIT to inform SEBI in writing if any information or particulars previously submitted to the regulator were found to be false or misleading or if there was any material change in the information already submitted.

According to the order, pending adjudication proceedings, the manager proposed to settle the matter without admitting or denying the facts and conclusions of law and filed an application on July 10, 2025.

After meetings with SEBI's internal committee on August 14, 2025 and October 14, 2025, the Nexus Select Mall Management proposed revised settlement terms on October 17, 2025.

The settlement terms were decided by SEBI's High Powered Advisory Committee in its meeting held on December 19, 2025. This was then approved by the regulator's whole-time members this February.

The Mumbai-listed REIT has presence across 15 cities with 19 malls and shopping centres. It recently picked up a 50% stake in an under-construction mall housed in a 250-acre township.

Published by HT Digital Content Services with permission from VC Circle.