Section 191 Investments and Securities Act

Section 191 of the Investments and Securities Act 2025 is about Real estate investment. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) A body corporate incorporated for the sole purpose of acquiring intermediate or long term interests in real estate or property development may raise funds from the capital market through the issue of securities which shall have the following characteristics —
(a) an income certificate giving the investor a right to a share of the
income of any property or property development;

(b) an ordinary share in the body corporate giving the investor voting rights in the management of that body corporate; and
(c) such other feature as the Commission may prescribe.

(2) Under this Act, a trust may be constituted for the sole purpose of acquiring a property on a ‘’trust for sale” for the investors.

(3) In the trust referred to in subsection (2), investors shall be entitled to —
(a) receive a periodic distribution of income and participate in any capital appreciation of the property concerned; and
(b) retain control over their investments by investing directly in a particular property rather than in a portfolio of investments.

(4) The Commission shall make rules and regulations regulating the activities and securities whether described as asset backed-securities or otherwise of real estate investment companies or trusts referred to in subsections (1) and (2).