In order to promote increased involvement of unitholders in the decision-making process, Sebi stated that the management of the REIT or investment manager of the InvIT must give unitholders the option to attend meetings via audiovisual methods such as video conferencing.
SEBI Limits Trading Size for Private InvITs
The trading lot size of privately issued infrastructure investment trusts (InvITs) has been significantly lowered by markets regulator Sebi to Rs 25 lakh in an effort to encourage investor participation and raise the liquidity of these investment vehicles.
Currently, the trading lot for privately issued InvITs on the secondary market is fixed at Rs 1 crore. Additionally, if the InvIT devotes a minimum of 80% of its asset value to finished With assets that generate income, the trading lot is Rs 2 crore.
In its notification dated September 26, Sebi stated that the trading lot for the purpose of trading units on the authorized stock exchange shall be Rs 25 lakh. That following day, the relocation became official.
The action will improve portfolio diversification and enable a larger pool of investors to engage in the market, which will assist raise the liquidity of privately put InvIT units.
Sebi has modified its regulations; SEBI Limits Trading Size for Private InvITs
To lessen the burden of compliance and promote convenience of doing business, Sebi has modified its regulations pertaining to infrastructure investment trusts (InvITs) and real estate investment trusts (REITs) in two different notices.
As a result, Sebi has set a five-working-day deadline for REIT and InvIT unitholder distributions days following the declaration date. The action is anticipated to expedite the distribution process and help make money available to investors in a more condensed amount of time.
If authorization is given in writing or electronically, the markets regulator has permitted REITs and InvITs to conduct a unitholders’ meeting with less than 21 days’ notice.
A majority of unit holders must consent in the event of any other meeting; at least 95% of unit holders must consent in the case of an annual meeting.
To encourage increased participation of unitholders in the decision-making process, Sebi said for all unitholder meetings, the manager of REIT/investment manager of InvIT shall have to give unitholders the choice to participate in the meeting via audiovisual means such as video conferencing and SEBI Limits Trading Size for Private InvITs.
In addition, unitholders will have the opportunity to participate in all unitholder meetings via remote electronic voting.
Unless otherwise noted, 50% of the total votes cast for the resolution should be cast in favor of every item brought up at these meetings that needs the unitholders’ approval.
According to Sebi, the management and the trustee are responsible for making sure that the electronically maintained records have sufficient backup systems, data storage space, and other contingency plans for alternate forms of communication.
Additionally, the trustee and manager must guarantee that a disaster recovery strategy and business continuity In order to preserve data and transaction integrity, the management and the trustee must also make sure that a business continuity strategy and disaster recovery site are in place for the electronically held records. (SEBI Limits Trading Size for Private InvITs)
Account opning link:
- Groww Account- https://app.groww.in/v3cO/kyrp1zph
- Kotak neo Account https://kotaksecurities.ref-r.com/c/i/32531/109103906
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