The Securities and Exchange Board of India (SEBI) has published a consultation paper on Holding of Sponsor in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The Report on the consultation paper was issued on 23rd February, 2023.
The consultation paper seeks to solicit public comments on the proposal to review norms with respect to Sponsor(s) REITs and InvITs. In this manner, it seeks to ensure alignment of interest between the sponsors and unit holders.
Keeping in mind the interest of unit holders and the structural vulnerabilities associated with absence of a Sponsor, comments are sought on the following:
- Whether the approach specified in the paper is suitable for aligning the interest of the Sponsor and the unitholder or alternatively if there is any other proposal that can align the interest of Sponsor and unitholders?
- Whether the norms adopted in the paper for declassification of Sponsor are adequate or any other additional norms needs to be prescribed?
The comments/ suggestions on the paper may be provided as per the prescribed format. The subject of the communication shall be titled as, “Comments on Consultation Paper on Holding of Sponsor in REITs and InvITs”.
These comments/ suggestion shall be submitted latest by 8th March, 2023, by email to: deenar@sebi.gov.in and; or mneeraj@sebi.gov.in
