SEBI permits virtual meetings for REIT and InVIT unitholders

The authority of capital markets, The Securities and Exchange Board of India (SEBI) has recently permitted investment managers of investment vehicles such as REITs and InvITs to hold unitholder meetings via video conferencing and other audio-visual methods. The authority has done so in a bid to improve governance and allow for the greatest possible unitholder involvement in the decision-making process.

According to the regulations, a real estate investment trust (REIT) annual meeting and an infrastructure investment trust (InvIT) annual meeting must both be held within 120 days of the end of a financial year and the interval between two meetings shouldn't be longer than 15 months. Additionally, managers of these investment instruments are required to call unitholder meetings in order to discuss specific issues.

SEBI announced its decision to permit investment managers of REITs and InvITs to convene unitholder meetings through video conferencing and other audio-visual methods in two distinct circulars. They must follow the regulator-mandated protocol while holding these sessions. Among other criteria, the investment managers of InvITs or managers of REITs should keep the recorded transcripts of the meetings conducted through VC or OAVM in their safekeeping. Additionally, InvITs and REITs must provide the meeting transcripts as soon as feasible after the meetings are over on their respective websites.

Before setting the meeting time it is important to consider how different people who are in different time zones will feel comfortable. The facility of remote e-voting must be made available among other things before the meeting's scheduled date, according to SEBI.

The meeting's chairperson must make sure that the e-voting option is available so that a poll on the business up for consideration can be taken during the meeting through VC or OAVM. Investment managers of REITs and InvITs are required to inform the trustee and stock exchange that the unitholders' meeting will be held through VC or OAVM. Unitholder meetings must be seen and attended by the trustee of these investment vehicles.

While an InvIT consists of a portfolio of infrastructure assets like highways and electricity transmission assets, a REIT consists of a portfolio of commercial real estate assets, the majority of which are already leased out. Although they are relatively new investment vehicles in the Indian context, both are hugely popular on international stock markets.

Next (MahaRERA allows builders to extend lapsed projects with consent)

SEBI permits virtual meetings for REIT and InVIT unitholders

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