Sebi announces two more ease-of-doing-business measures for REITs and InvITs

Until now, these asset classes were required to have the statement of investor complaints reviewed by the Board of Directors of the Manager before submission to the stock exchanges. As the circulars noted, this requirement is not in line with LODR Regulations. (Representational image)

Real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) have been given more days to submit details of statement of deviation(s) in the use of issue proceeds, through two circulars issued on August 22.

This is one of the amendments the Securities and Exchange Board of India (Sebi) has announced for the two asset classes for two ease-of-doing business.

REITs and InvITs were until now required to make these submissions within 21 days from the end of each quarter. With the new amendments made for ease of doing business (EoDB) and to align the provisions with the Listing Obligations and Disclosure Requirements (LODR) Regulations, REITs and InvITs can submit these along with their financial results.

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Under the Regulation 33 (3) of the LODR Regulations, the quarterly (audited/unaudited) results have to be submitted within a period of 45 days from the end of each quarter.

The second EoDB amendment announced through the circulars, to make them in alignment with LODR Regulations, involved the review process of investor-complaints.

Until now, these asset classes were required to have the statement of investor complaints reviewed by the Board of Directors of the Manager before submission to the stock exchanges. As the circulars noted, this requirement is not in line with LODR Regulations.

As per the LODR Regulations, a prior review by the Board of Directors of the listed entity is not required, and such statement is instead required to be placed before the Board of Directors on a quarterly basis.

Therefore, the new amendment to the REITs master circular reads: "“The Trustee and the Board of Directors/Governing Body of the Manager shall ensure that all investor complaints are redressed by the Manager in timely manner. Further, the statement as specified in Para 4.16.3. above shall be placed, on a quarterly basis, before the Board of Directors/Governing Body of the Manager and the Trustee for review.”

Para 4.16.3. details the format in which the investor complaints received through SCORES platform need to be disclosed and filed with the stock exchanges, and the timeline within which this needs to be done (within 21 days from the end of the quarter or the end of the financial year).

The same change has been made for the master circular for InvITs.