Equity-oriented CIS: AMCs allowed investment in units of unlisted REIT scheme

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed the Asset Management Companies (AMCs) to invest, on behalf of equity-oriented Collective Investment Schemes (CIS), in units of unlisted or privately placed Real Estate Investment Trust (REIT) scheme. The SECP has issues circular No 19 of 2021 Saturday on the investment in units of unlisted or privately placed REIT scheme by equity-oriented CIS.

According to the SECP, the commission, in exercise of powers conferred under Section 282 B (3) of the Companies Ordinance, 1984 read with Regulation 55(15) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the "Regulations") hereby allows Asset Management Companies (AMCs) to invest, on behalf of equity oriented CIS namely equity, asset allocation, balanced and index schemes, in units of unlisted or privately placed REIT Scheme, which shall be listed on a securities exchange within a period of three years from its financial close as provided in Regulation 5(3) of the REIT Regulations, 2015.

This is subject to the condition that the CIS shall take exposure in units of unlisted or privately placed REIT Schemes up to a maximum of five percent of net assets of CIS or net assets of such REIT Schemes, whichever is lower; provided that the entity/sector/group exposure limits as specified in the Regulation are complied with.

Copyright Business Recorder, 2021