On May 9, IND SEBI proposed streamlining measures re REITs, InvITs.
IND SEBI issued consultation paper outlining measures with respect to ease of doing business for REITs as well as infrastructure investment trusts (hereafter, InvITs).
Follows IND SEBI Oct. 2023 proposed simplification of numerous regs, see #186918.
Proposals Common to REITs and InvITs
Proposal includes revising timelines for distribution to 5 working days from declaration.
Allow unitholders meeting with shorter notice subject to at least getting 95% consent.
Plus, align provisions for submission and review of statement of investor complaints with the SEBI Listing obligations and disclosure requirements regulations (LODR).
In addition, proposed a provision for the submission of the statement of deviations as well as variations to coincide with the date of publication of the quarterly results.
Clarification on voting thresholds in terms of percentage, instead of proportionate terms, and providing electronic meeting and e-voting option to unitholders.
Allow the maintenance of records in electronic form for both manager and trustee.
Allow data backup and disaster recovery for records maintained in electronic form.
Proposals for InvITs Only
Proposals includes reduction of trading lot for privately placed InvITs to INR 2.5mn.
Align provision with re change in sponsor for SEBI (infrastructure investment trusts) regulations, 2014 with SEBI (real estate investment trusts) regulations, 2014.
Consultation End
The comment period for this consultation closes on May 30, 2024.
In May 2024, IND SEBI published notice of gazetted amendment regs, see #213811.
Oct. 2024 Amendment Regulations
On Oct. 1, 2024, IND SEBI issued 2 sets of regulations implementing proposals above.
The SEBI (infrastructure investment trusts) (third amendment) regulations, 2024 amend the 2014 InvIT regulations, with effect from Sep. 27, 2024 being the date of publication in the gazette, but with a certain provision taking effect Nov. 26, 2024.
The amendments establish a trading lot of INR 25 lakh for unit trading, set out requirements for distribution declarations at least semi-annually for publicly offered InvITs, annually for privately placed InvITs, and specify timelines for distributions.
They allow for unit holder meetings to be conducted with shorter notice if a significant majority consents and require robust electronic record-keeping and continuity plans.
The SEBI (real estate investment trusts) (third amendment) regulations, 2024 amend the 2014 REITs regulations also with effect from Sep. 27, 2024 being the date of publication in the gazette, but with a certain provision taking effect Nov. 26, 2024.
They allow an annual unit holders meeting with shorter notice subject to minimum 95% consent and provide for electronic meeting and e-voting option to unit holders.
Documents dated Oct. 1, 2024, received from IND SEBI Oct. 3, summarized Oct. 7.
