Securities and Exchange Board of India (Sebi) Seeks Input on Changes to REITs and InvITs Master Circulars
The Securities and Exchange Board of India (Sebi) is seeking public input on proposed changes to the master circulars for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These changes are designed to clarify the nomination rights of directors to the boards of REIT and InvIT managers.
The amendments aim to address requests from market participants for clarity regarding unitholders’ rights to nominate a director to the board of the investment manager or manager of REITs and InvITs. Specifically, the amendments propose that the restriction on nominating a unitholder nominee director will not apply if the right to appoint a nominee director is provided under the Sebi (Debenture Trustees) regulations.
Currently, according to the existing norms, a unitholder with a significant number of units in an InvIT or REIT has the right to nominate a director, provided their unitholding exceeds a specified threshold.
Sebi has set a deadline of July 29, 2024, for stakeholders to submit their comments and suggestions. The regulator emphasizes the importance of concise and detailed feedback, focusing on the reasoning behind each viewpoint. It is clarified that this consultation is not a voting process but an opportunity to gather informed opinions to shape effective policy.
Stakeholders are required to use Sebi’s web-based form for submitting comments. Detailed instructions include addressing each proposal sequentially, providing clear references to the consultation paper, and avoiding special characters in submissions. Sebi also recommends downloading a PDF backup in case of technical issues during submission.