The Securities and Exchange Board of India (SEBI) has introduced disclosure formats for compliance reports on governance and annual secretarial requirements for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These formats, to be implemented from the fiscal year 2024, mandate the disclosure of crucial information such as investment managers' details, board and committee compositions, and meeting schedules. Investment managers are also required to submit quarterly compliance reports and an annual secretarial compliance report. The objective is to improve transparency, accountability, and regulatory compliance in the operations of REITs and InvITs, contributing to the overall development of Indian capital markets.
.png)
The Securities and Exchange Board of India (SEBI), the capital markets regulator, recently unveiled disclosure formats for compliance reports on governance and annual secretarial requirements for emerging investment vehicles, including Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). These formats are set to be implemented starting from the fiscal year 2024, as outlined in four circulars issued by SEBI.
Under the new compliance report on governance format, SEBI mandates that InvITs and REITs must disclose crucial information such as the names of the investment managers, the composition of the investment managers' board of directors, and the composition of committees. Additionally, they must disclose quarterly board meetings and committee meetings.
Furthermore, SEBI has introduced separate formats for investment managers of InvITs and REITs to submit reports for the financial year. Investment managers are required to submit a quarterly compliance report on governance to stock exchanges within 21 days after the end of each quarter. This report must be signed by either the compliance officer or the chief executive officer of the investment manager.
SEBI's guidelines also emphasize the need for an annual secretarial compliance report. Investment managers are required to appoint a practicing company secretary on an annual basis to assess compliance with all applicable rules. The practicing company secretary is then responsible for submitting a comprehensive report to the investment managers, highlighting any deviations and observations.
In the format for the annual secretarial compliance report, investment managers are expected to disclose their adherence to regulatory norms, as well as any instances of non-compliance or observations made during the assessment.
The introduction of these disclosure formats by SEBI aims to enhance transparency and accountability in the operations of REITs and InvITs, ensuring that they meet regulatory standards. These initiatives are expected to contribute to the overall development and stability of the Indian capital markets.
Advertisement
Facebook
Whatsapp
