SEBI on August 06, 2024 has revised the board nomination rights to unitholders of REITs and InvITs. As per the master circulars, Eligible Unit holder(s) shall be entitled to nominate only one Unit holder as Nominee Director, subject to the unit holding of such Eligible Unitholder(s) exceeding the specified threshold. If the right to nominate one or more directors on the Board of Directors of the Manager is available to any entity (or to an associate of such entity) in the capacity of shareholder of the Manager or lender to the Manager or the SPVs), then such entity in its capacity as unitholder, shall not be entitled to nominate or participate in the nomination of a Unitholder Nominee Director.
This circular has provided a relaxation whereby the above restriction relating to the right to nominate a Unitholder Nominee Director shall not be applicable if the right to appoint a nominee director is available in terms of clause (e) of sub-regulation (1) of regulation 15 of the SEBI (Debenture Trustees) Regulations, 1993.
The necessary changes are made to Master Circular for Real Estate Investment Trusts (REITs) and Amendment to Master Circular for Infrastructure Investment Trusts (InvITs).
