SEBI Seeks Public Input on REITs and InvITs Nomination Rights Amendments

The Securities and Exchange Board of India (SEBI) is inviting public feedback on proposed amendments to REITs and InvITs master circulars. These changes aim to clarify the nomination rights of unitholders to appoint directors to the boards of Investment Managers. Public comments are accepted until July 29.

The Securities and Exchange Board of India (SEBI) announced on Tuesday its call for public feedback on proposed amendments to the master circulars governing Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).

In their consultation paper, SEBI stated that these changes aim to bring clarity regarding the rights of unitholders in nominating directors to the boards of InvIT and REIT managers. The proposed amendments address market participants' queries on whether unitholders have the right to nominate directors if they hold a significant portion of units.

SEBI clarified that the restriction on nominating a unitholder nominee director will not apply if the right to appoint such a director is available under the SEBI (Debenture Trustees) regulations. Public comments on the draft circulars will be accepted until July 29.