Updated SEBI Guidelines for REITs: Changes in Review Processes and Disclosure Timelines Effective Immediately.
22 August 2024
1. Background: SEBI's Master Circular for Real Estate Investment Trusts (REITs) dated May 15, 2024, incorporates provisions from Circular No. CIR/IMD/DF/146/2016 regarding continuous disclosures by REITs.
2. Review of Investor Complaints:
- The Working Group's recommendations suggest changes to the review process of investor complaints.
- Previously, the REITs’ Board of Directors was required to review the complaints before submission to stock exchanges, which is inconsistent with SEBI’s LODR Regulations.
- The proposed amendment removes this prior review requirement. Instead, the statement of investor complaints should be reviewed quarterly by the Board and the Trustee.
3. Disclosure of Statement of Deviations:
- Currently, the deviation statements must be submitted to stock exchanges within 21 days after each quarter and reviewed by the Trustee and the Board.
- To align with the LODR Regulations, the proposed amendment requires these statements to be submitted along with financial results on a quarterly basis.
4. Implementation:
- The changes are effective immediately.
- Stock exchanges are instructed to update their websites with this information.
5. Legal Authority:
- The circular is issued under SEBI Act, 1992, and REIT Regulations, with approval from the competent authority.