Circular No. SEBI/HO/DDHS/DDHS-PoD-2/P/CIR/2024/108; Dated: 06.08.2024
Earlier, SEBI notified a master circular for REITs and InvITs dated May 15, 2024, allowing eligible unitholders to nominate only one Unitholder Nominee Director, subject to the unitholding of such eligible unitholders exceeding the specified threshold.
Market participants have requested that clarity be provided on the availability of the right to nominate a director on the Board of Directors of the Manager of REIT to a unitholder where such nomination right is also available to a unitholder in the capacity of lender to the Manager or the REIT.
In order to promote ease of doing business, and based on the industry’s request and the recommendations of the Hybrid Securities Advisory Committee, a proviso under paragraph 18.2.2 (b) of the Master Circular for REITs and InvITs is proposed to be added.
Accordingly, SEBI has provided a relaxation, whereby the restriction regarding the right to nominate a unitholder nominee director must not apply where the right to appoint a nominee director is available in terms of regulation 15(1) of SEBI (Debenture Trustees) Regulations, 1993. The circular shall be effective immediately.
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