SEBI notifies SEBI (Real Estate Investment Trusts) (Second Amendment) Regulations, 2023: Inserts new Stewardship Code [Read Notification]

The Securities Exchange Board of India (SEBI) vide notification No. SEBI/LAD-NRO/GN/2023/144 notified SEBI (Real Estate Investment Trusts) (Second Amendment) Regulations, 2023 in which a new Stewardship Code is inserted after Schedule VIII.

Exercising the authority granted by section 30 in conjunction with sections 11 and 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board has issued the subsequent regulations to modify the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014.

After Schedule VIII, the following Schedule shall be inserted namely, Schedule IX - Stewardship Code.

According to the new insertion, the following principles of stewardship code shall be complied with by any unitholder holding not less than ten percent of the total outstanding units of the REIT:

1. They must act in the best interests of the Real Estate Investment Trusts (REIT) and its unitholders as a whole;
2. They should formulate a comprehensive policy on the discharge of their stewardship responsibilities, review and update the same periodically;
3. They should have a policy to manage issues of conflict of interest while fulfilling their stewardship responsibilities;
4. They should periodically monitor the REIT and its investee entities viz. HoldCo(s) and SPV(s);
5. They should have a policy on intervention in the REIT and its HoldCo(s) and SPV(s);
6. They should have a policy on voting.

To Read the full text of the Order CLICK HERE

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