SEBI Seeks Public Input On Amendments To REITs And InvITs Master Circulars
The Securities and Exchange Board of India (SEBI) has initiated a public consultation on proposed amendments to the master circulars governing Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). In a recent consultation paper, SEBI highlighted that the proposed changes respond to requests from market participants for clearer guidelines on...
The Securities and Exchange Board of India (SEBI) has initiated a public consultation on proposed amendments to the master circulars governing Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
In a recent consultation paper, SEBI highlighted that the proposed changes respond to requests from market participants for clearer guidelines on the nomination process for unitholder nominee directors. Currently, under existing norms, unitholders with a substantial stake in REITs or InvITs can nominate a director, subject to specific thresholds.
The amendments propose lifting restrictions on nominating a unitholder nominee director if the right to appoint such a director aligns with SEBI's regulations for Debenture Trustees.
According to SEBI's draft circular, the amendments address concerns raised by stakeholders regarding the eligibility criteria for nominating directors. Market feedback advocated the need for clarity on whether unitholders could nominate directors in cases where similar rights apply to entities acting as lenders or shareholders to the investment manager or the REIT/InvIT entities.
SEBI has invited comments and suggestions from the public on these proposed changes, with the consultation period open until July 29.
CLICK HERE TO READ/DOWNLOAD DRAFT CIRCULARS FOR PUBLIC COMMENTS