As part of streamlining the provisions for REITs and InvITs, the regulator said the tenure of an auditor will be made till the conclusion of the fifth annual general meeting of unit holders, and a statutory auditor will undertake a limited review of audit of all the entities or companies whose accounts are to be consolidated.
Markets watchdog Sebi said it will put in place governance norms for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) on the lines of listed companies. With respect to REITs and InvITs, the provisions such as those related to the tenure of the auditor, computation of leverage, and unclaimed/unpaid distribution will be streamlined by the regulator.
These proposals were approved by the board of Sebi during its meeting here. Sebi has decided to introduce governance norms for REITs and InvITs along the lines of corporate governance norms for listed companies. “The corporate governance norms applicable for listed companies to be applicable to REITs and InvITs, irrespective of whether any debt security was issued by them,” it said.
However, certain provisions of Sebi (Listing Obligations and Disclosure Requirements) Regulations that are not directly applicable or are already specified for REIT/ InvIT under respective regulations have been carved out.
As part of streamlining the provisions for REITs and InvITs, the regulator said the tenure of an auditor will be made till the conclusion of the fifth annual general meeting of unit holders, and a statutory auditor will undertake a limited review of audit of all the entities or companies whose accounts are to be consolidated.
