 "Sebi issues framework for REITs, InvITs to exercise board nomination rights")
Markets regulator Sebi on Monday issued the framework to exercise board nomination rights by eligible unitholders of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
At its board meeting on June 28, the board of Sebi approved introducing nomination rights to unitholders of REITs and InvITs.
An eligible unitholder means a unitholder that has 10 per cent or more of the total outstanding units of a REIT or InvIT, either individually or collectively.
The Securities and Exchange Board of India (Sebi) has issued the framework to exercise board nomination rights by the eligible unitholders, according to two separate but similarly-worded circulars.
The regulator said the manager of a REIT or InvIT should review whether the eligible unitholders who have exercised the board nomination right, continue to have/hold the required number of units of the REIT or InvIT concerned.
The review has to be done within 10 days from the end of each calendar month.
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In this regard, a report should be submitted by the manager to trustee of the REIT or InvIT concerned, as per the circulars.
Eligible unitholders shall have the right, but not the obligation, to nominate any person for appointment as unitholder nominee director.