SEBI Releases Framework for Unitholders of REITs & InvITs Allowing them to Exercise their Board Nomination Rights
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- Last Updated on 13 September, 2023
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Circular No: SEBI/HO/DDHS-PoD-2/P/CIR/2023/153 & 154; Dated: 11.09.2023
As per the SEBI (Real Estate Investment Trusts) Regulations, 2014 and SEBI (Infrastructure Investment Trusts) Regulations, 2014, unitholders holding 10% or more of the total outstanding units of the REIT/InvIT, either individually or collectively must be entitled to nominate one director on the board of directors of the manager or investment manager.
Accordingly, the SEBI has released a framework for unitholders of Real Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) allowing them to exercise their board nomination rights.
As per the framework, the manager of a REIT/investment manager of the InvIT must review whether the eligible unitholders who have exercised their board nomination right, continue to hold the required number of units of REIT/InvIT and make a report on the same. The review must be done within 10 days from the end of each calendar month.
Further, the report must be submitted by the manager/investment manager to the trustee of the REIT or InvIT concerned. Also, the framework has been annexed to the circular itself. The circular shall be effective immediately.
Click Here To Read The Full Circular
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