Sebi offers rights to unitholders of REITs, InvITs for corporate governance

With an aim to strengthen governance norms, markets regulator Sebi on Tuesday proposed special rights to unitholders of REITs and InvITs by providing the right to nominate representative on the boards. Also, the regulator has suggested the concept of self-sponsored real estate investment trust (REIT) or infrastructure investment trust ( InvIT), according to a consultation paper. In addition, Sebi has proposed that principles of stewardship code should be applicable to members, nominated by the unitholders, on the board of directors of investment manager of REIT and InvIT. The proposed move would empower unitholders of REITs and InvITs to monitor their investment in REIT/InvIT and assist in decision making. The Securities and Exchange Board of India (Sebi) has sought public comments on the proposals till May 29. REITs and InvITs were introduced in India to provide investors with an opportunity to gain exposure to real estate and infrastructure projects respectively, with ...

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