ISLAMABAD: The Real Estate Investment Trust (Reit) Regulations 2022 are open for comments and ideas for possible enhancements. The Securities and Exchange Commission of Pakistan has released a Consultation Paper in this regard.
This document is a component of SECP’s endeavors to update the regulatory framework, adapting to the changing Reit environment in the nation and bringing the Reit laws into line with global standards. Following discussions with pertinent parties, such as trustees and Reit Management Companies (RMCs), the SECP carried out the analysis.
Simplifying the process of registering a trust deed and Reit scheme, rationalizing the timeframes for transferring real estate or SPV shares in the name of a Reit scheme, and speeding up the listing of REIT schemes are some such areas where improvements have been suggested.
The overall plan to transform REITs into a dynamic asset class for the capital market is one of the additional enhancements. The rationale behind the identification of every possible area has also been supplied to encourage feedback sharing among stakeholders.
Additionally, recommendations for improving the roles of the trustee and RMC, reducing regulatory arbitrage across various Reit structures, and putting policies in place to strengthen adherence to the Shariah governance framework have been extended to the SECP.
