A Consultation Paper has been released by the Securities and Exchange Commission of Pakistan, seeking comments and opinions regarding possible enhancements to the Real Estate Investment Trust Regulations, 2022 (REIT Regulations).
The paper is a component of SECP’s endeavors to update the regulatory framework in order to accommodate the nation’s changing REIT environment and bring the REIT Regulations into compliance with global standards. Based on discussions with pertinent parties, such as trustees and RMCs, the study was completed.
Simplifying the process of registering trust deeds and REIT schemes, rationalizing the timeframes for transferring real estate or SPV shares in the name of REIT schemes, and expediting the listing of REIT schemes are some possible areas where improvements have been suggested. These changes are all intended to make REITs a thriving asset class in the capital markets. The rationale behind the designation of every possible domain has also been furnished to enable interested parties to offer their opinions.
Additionally, recommendations are being sought for ways to improve adherence to the Shariah governance framework, reduce regulatory arbitrage between various REIT structures, and strengthen the roles of the trustee and RMC.
It is recommended that stakeholders provide input or recommendations on the possible areas for improvement, together with any additional ideas, between July 5 and July 9, 2024. The SECP website has access to the consultation paper.
