ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has decided to streamline procedure for registration of trust deed and Real Estate Investment Trust (REIT) Scheme.
The SECP has issued notification for public consultations on the proposed amendments to the REIT Regulations, 2022 (the “REIT Regulations”).
The draft amendments follow an extensive consultation process with key stakeholders, including REIT Management Companies (RMCs), trustees, the banking sector, mutual funds, legal firms, and consultants. Initial feedback was collected to pinpoint areas for improvement in the REIT Regulations. The insights were consolidated into a detailed Consultation Paper titled “Areas of Improvement in the REIT Regulations, 2022”, which was published to invite further feedback.
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In-person consultations were subsequently held in Karachi and Lahore, where the feedback was discussed in-depth, ensuring the proposals were refined based on a consensus-driven approach.
The SECP has now notified the draft amendments for comments before these become effective. These amendments focus on streamlining procedures for registration of trust deed and REIT Scheme; establishing clearer timelines for transferring real estate/shares of Special Purpose Vehicles (SPVs) under the REIT scheme, and promoting early listing of REIT schemes to boost their presence as a capital market asset class. Additionally, the amendments aim to strengthen the roles and responsibilities of the RMC and trustee, address regulatory arbitrage across different REIT structures, and enhance adherence to the Shariah governance framework.
Provided further that no amendments including any modification, alteration and/or additions/deletions shall be made in the Trust Deed without the consent of the Trustee and prior notice of at least seven days shall be given to the Unit Holders, if any. Provided also that modification in Trust Deed shall not be required in case of change of intermediaries, that helps RMC and trustee in execution of the REIT Scheme, new regulations said.
The SECP is committed to a robust and transparent consultation process, ensuring stakeholders have ample opportunity to contribute during the regulatory review. Feedback on the draft amendments can be submitted by February 13, 2025, to REIT.Feedback@secp. gov.pk.
Copyright Business Recorder, 2025
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