Capital markets regulator Sebi on Friday allowed investment managers of investment vehicles -- REITs and InvITs-- to conduct meetings of unitholders through video conferencing and other audio-visual means.
The move would allow maximum participation of unitholders in the decision-making process and help in better governance.
Under the rules, an annual meeting of all unitholders of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) need to be held within 120 days from the end of a financial year and the time between two meetings should not exceed 15 months.
Further, managers of such investment instruments are also required to hold meetings of unitholders for certain matters.
In two separate circulars, Sebi said it has decided to allow investment managers of REITs and InvITs to conduct meetings of unitholders through video conferencing (VC) and other audio-visual means (OAVM).
For conducting such meetings, they need to comply with the procedure prescribed by the regulator. Among other requirements, recorded transcripts of the meetings held through VC or OAVM should be maintained in the safe custody of the investment managers of InvITs or managers of REITs.
Also, InvITs and REITs are required to upload the transcripts on their respective websites as soon as possible after the conclusion of the meetings.
In addition, the convenience of different persons positioned in different time zones need to be kept in mind before scheduling the meeting. Before the actual date of the meeting, the facility of remote e-voting needs to be provided, among others, Sebi said.
The chairperson present at the meeting needs to ensure that the facility of e-voting is available for the purpose of conducting a poll during the meeting held through VC or OAVM on the business to be considered.
Investment managers of REITs and InvITs are required to disclose to the stock exchange and trustee that the meeting of unitholders would be conducted through VC or OAVM. The trustee of these investment vehicles will have to attend meetings of unitholders and monitor such meetings.
REITs and InvITs are relatively new investment instruments in the Indian context but are extremely popular in the global markets.
While an REIT comprises a portfolio of commercial real assets, a major portion of which is already leased out, and InvIT consists of a portfolio of infrastructure assets such as highways and power transmission assets.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app